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    Showing posts with label California Professional Liability. Show all posts
    Showing posts with label California Professional Liability. Show all posts

  1. WHAT IS E&O INSURANCE?

    Monday, August 5, 2013

    What is E&O insurance?
    Errors and omssions (E&O) is the insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results. For doctors, dentists, chiropractors, etc., it is often called malpractice insurance. For lawyers, accountants, architects or engineers, it may be called professional liability. Whatever you call it, it covers you for errors (or omissions) that you have made or that the client perceives you have made.
    Most E&O policies cover judgments, settlements and defense costs. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. They can bankrupt a smaller company or individual and have a lasting effect on the bottom line of larger companies.
    In short, E&O coverage provides protection for you in the event that an error or omission on your part has caused a financial loss for your client.
    Who needs E&O insurance?
    The best-known professionals who need E&O insurance are doctors, lawyers, accountants, architects, engineers, etc.  However,
    Read more »

    Posted by Tina Jackson Insurance Santa Barbara at 8:37 AM | Labels: , , | 0 comments | |

  2. What Does Professional Liability Insurance Protect You Against?
    Professional Liability insurance, also known as Errors & Omissions insurance (E&O), provides coverage to defend and indemnify the design professional against claims alleging negligent acts, errors or omissions in the performance of professional services (Wrongful Acts).
    Wrongful Acts are not limited to defects in plans and specifications. Coverage usually extends broadly to encompass most of the professional services rendered by architects, engineers, and other design consultants. The Professional Liability policy is meant to pay on behalf of the design professional those damages that the design professional is legally obligated to pay as a result of a Wrongful Act.
    The policy deductible usually applies to each claim, and may or may not apply to the cost of defense. The policy limit of liability typically includes defense costs, meaning that the limit is eroded and can be exhausted by legal fees and other defense costs. Careful consideration should be made when deciding on an adequate limit of liability.
    Policies typically exclude express warranties or guarantees; obligations under worker's compensation laws; claims by employees for employment practices and; the costs to repair/replace faulty workmanship on construction performed by the insured. As with all insurance policies, it is important to read the exclusions to see how they may impact your business. 
    Professional liability coverage is written almost exclusively on a "Claims Made" form. Once the policy is canceled or non-renewed, all coverage will cease. In order to establish coverage, three conditions must be met:
    1. A policy must be in place at the time a claim is made
    2. A "retroactive" or "prior acts" date on the policy must be dated at least as far back as when the services giving rise to the claim were provided;
    3. A notice in the appropriate form must be provided to the insurer within the policy term or during a grace period that might be thirty or sixty days after coverage termination (this last should be defined within the policy form).
    Few, if any, policies will provide retroactive coverage to the previously uninsured firm. It is therefore advisable to begin a professional liability insurance program as early as practical in one's practice.

    Posted by Tina Jackson Insurance Santa Barbara at 6:58 AM | Labels: , , | 0 comments | |