| Don't be
thrown off by the term professional liability.
That covers a broad range of services by people
with specialized knowledge and training. You may
think of a physician and a lawyer as the only
professionals (physicians require a specific medical
malpractice insurance policy). Actually the term
encompasses occupations like web site designers,
travel agents, and insurance agents.
Some will argue about who is a professional.
For insurance purposes, it's someone that provides
specialized services that not everyone can provide.
Thus insurance is available for a wide range
of services. Bodily injury or property damage
is unnecessary for damage to the recipient of
a professional's service. If an escrow agent
fails to perform properly there may be no property
damage or bodily injury; however the parties
will suffer at least a delay.
Why don't general liability insurance policies
cover professionals? The professional risk differs
from the general liability risks we all have
in our personal and business lives. By separating
general and professional, you don't pay extra
general liability premiums to cover the professionals'
risks.
Check with your insurance agent to see if your
business needs professional liability coverage.
The list of businesses that do includes:
• paramedics
• sports agents
• medical imaging centers
• tour operators
• mortgage brokers
• interior designers
In the construction field, design/build firms
and project managers also need professional
liability insurance.
The term errors and omissions, or E & O
can be used as a distinction from professional
liability insurance. This applies to:
• medical related occupations
• real estate agents
• accountants
• insurance agents.
The latter group refers to its coverage as E
& O.
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