Professional Liability Insurance, (also called Professional Indemnity Insurance), represents important protection for professionals in many industries as it protects against potential negligence claims. Whether you are an Architect or Lawyer; Physician or Accountant; Medical professional concerned about Medical Malpractice claims, or someone providing a professional service in one of a number of business categories, a PLI policy could protect you and your business from claims of failure to perform, financial loss and error or omission of the products or services sold. Additional coverage for breach of warranty, intellectual property, personal injury, security and cost of contract can also be added.
The primary need for PLI coverage is that a general liability insurance policy may only respond to a bodily injury, property damage, personal injury or advertising injury claim. However, typical reasons for making claims on PLI policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if a software product fails to perform properly, it may not cause physical damages, personal or advertising injuries, therefore the general liability policy would not be triggered. It may, however, directly cause financial losses which could potentially be attributed to the software developer’s misrepresentation of the product capabilities.
If you are at all concerned about potential professional liability issues, please call us for help in determining the most appropriate coverage to suit your particular business category and needs.
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