Protection against professional liability by service contractors is increasingly required by organizations in their requests for proposals.  In this way, companies who hire outside consultants are protecting themselves against any claims from their clients or customers brought by errors and omissions of the contracted service provider.  So, professional liability insurance benefits a business even if claims of liability never occur.

Examples of Errors That Can Be Costly
There are as many compelling reasons for professional liability insurance as there are potential mistakes made.

• An accidental upload of a computer virus costs a company $10 million to restore data and software.
• A consultant is sued for damages from faulty advice in a seminar.
• Confidential information is disclosed to a third party, causing inventory to depreciate in value.
• A consultant’s installation of a program opens the client to a copyright infringement action.
• A person is defamed by a remark logged into a company’s web site, and sues the site’s host company.
• A billing system to process 10 accounts per minute turns out to perform only half as many.

Professional Liability Coverage Now More Popular, Less Costly
As one of the fastest growing forms of business insurance, modern professional liability plans reward buyers with rates that have been moderated through calculation of professional-specific exposures. 

• Programs by underwriters who are admitted and approved by all states.
• Optional deductibles for the lowest possible premium levels
• Premiums based on the risks of specific occupations or professions, in order to provide maximum protection at the lowest possible cost.
• Legal defense provided by the underwriter at no added cost.
• Loss control hotline providing 2 free hours of legal consultation per session for possible claims.