As insurance agents, one of the most difficult jobs we have is convincing our clients to purchase professional liability insurance. General liability insurance, while very broad in scope, does not cover claims of bodily injury, property damage or financial loss that result from your “professional services”. We often associate “professional services” with accountants, lawyers, architects and engineers. However, many other businesses have professional services, or the possibility of creating a financial losss, and should purchase professional liability insurance. Think about the following claim scenarios, from business types you might not associate with professional liability:
- A website designer is hired to create an e-commerce site for an online retailer. The website is launched with serious programming flaws and fails to function as expected. The retailer suffers a loss of revenue and receives numerous bad reviews online.
- A wedding planner is hired by a couple to find a location, hire caterers and entertainers. The entertainer hired by the planner fails to show up for the event, leaving the wedding without music. The less-than-happy couple sue for emotional distress.
- A sprinkler contractor is hired to design and install a fire protection system in a new restaurant. Several months later there is a fire in the kitchen that quickly spreads because the fire protection system was improperly designed or improperly installed. The sprinkler contractor is sued by the restaurant’s insurance carrier for improper design or installation.
- A printer is hired to create printed flyers for a large event. The printer agrees to have the flyers completed by a particular date so the event holder can distribute them in a timely fashion. The printer is unable to complete flyers by the agreed upon date. As a result, very few people attend the event and the printer is sued for loss of income.
The reality is that many types of businesses should consider carrying professional liability coverage. Fortunately, many insurance policies include the option of purchasing professional liability with your general liability. Or, we can offer a stand alone professional liability policy for your business. At Safeguard Insurance we work with several insurance carriers that specialize in professional liability for many types of businesses. If you think you might need professional liability coverage, contact us today to discuss what options we might have for you.