IOA Insurance Services
You might need this coverage and not know it until it’s too late. Professional liability coverage is for specialists in various professional fields. Since basic liability policies do not protect against situations arising out of business or professional pursuits, professional liability insurance is purchased by individuals who hold themselves out to the general public as having greater than average expertise in particular areas.
Professional Liability insurance covers professionals for claims made against them for economic losses flowing from the advices and services that they provide to their clients. It provides financial protection to meet the costs of defending legal actions and any damages that may become payable.
Why is Professional Liability insurance vital?
1. Regulation – Legal Requirement
Traditional professions like Accountants, Architects, Engineers, Lawyers and Insurance Brokers are highly regulated by local authorities and in many cases these professions are legally required to have a professional liability insurance in place.
2. Contractual Obligations
Service providers are increasingly finding professional liability insurance as one of the pre-requisite requirements when tendering for business, especially where contracts are awarded
3. Financial Protection
A single claim can ruin a business financially since litigation can be expensive, time-consuming and resource hungry. You may face litigation even if you have done nothing wrong.
4. Reputation Protection
If you are a professional, your reputation is everything and maintaining this reputation is critical. If a claim does arise, our claims experts will provide assistance in the management of a positive relationship between you and your client so as to mitigate the damage to your reputation.
5. Customer Protection
Professional Liability insurance aims to remove the financial burden for the service provider. This helps to minimise the fear of economic loss and provides peace of mind which enables the professional to focus on what’s important– servicing their client.
6. Litigation Environment
The frequency and severity of lawsuits against professional service providers has been on the rise for last few years, fueled by countless customers and clients who believe, rightly or wrongly, that they have suffered when professional services did not live up to their expectations.
Defense of claims can take many years and the consequences of professional liability lawsuits are extremely unpredictable. The legal costs in defending a professional liability lawsuit alone can be enormous and ensuring access to a quality legal defense team is critical when the stakes are so high.
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