Issues arising from professional errors & omissions liability are of great concern today. There was a time when the professional (or quasi-professional) was not a target for lawsuits. Times have changed. Today, the public and our legal system hold professionals to an increasingly high standard of care and responsibility.
Public attitudes, improved knowledge of legal and contractual rights and media attention have all focused the need for increased accountability on the part of the professional. This higher accountability makes the professional responsible for every action, however innocent; they do or fail to do.
Professional Liability Insurance offers protection from claims arising from negligent acts, errors or omissions on the part of a professional in the performance of service to a third party.
What is a negligent act? Mere evidence of negligence does not automatically establish a liability. For an action to succeed, there must be a duty of care owed to the claimant by the professional. It is the breach of that duty, leading to loss or damage, which can expose the professional to financial liability. The professional is not only liable for his/her own negligence, but may be liable for the actions of any person acting in a professional capacity on his/her behalf.
Professional Liability Insurance is one form of protection for professionals and for their clients. Coverage will protect assets and will help maintain a good reputation through the defence of allegations of wrongdoing even if frivolous or false. For the client who has suffered some damages through the actions of a professional, liability insurance will ensure that there are adequate funds available to make amends for the wrong that has been done. A professional liability policy offers the Insured peace of mind by knowing that they have coverage in the event of a loss.