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In any field of business, little is perfect. Mistakes do happen. They occur in all fields, all industries and in all forms.
In medicine and science, clients benefit from the best course of action suggested by an experienced practitioner at the time of service. In some cases, however, there may be a miscalculation or a mistake.
As a business owner or private practitioner, it’s critical to protect your investments. Consider Errors & Omissions coverage to solidify your assets.
Below are just a few examples of professional liability claims:
• An attorney misses a filing date for a lawsuit and the client loses the right to sue.
• A surgeon removes too little, too much, or the wrong tissue
• A hair stylist misuses chemicals and burns their client
• A computer consultant provides incompatible software, causing damage to the hardware.
Or consider these more unusual, but real claims:
• A real estate agent sells a home that the listing agent reports as being in a certain school district. The selling agent does not correct the error, even though they were never asked to verify the piece of information.
• A stockbroker advises a client to sell stock and balance their portfolio. The client refuses and loses money. The client sues for mismanagement.
Most professional services contracts offer advice, design, expertise, politics, negotiations, or any skill associated with a particular profession. Beyond laws and regulations, professions self-govern by way of setting minimum performance and ethical standards.
When these performance standards are not met, either by an error occurring or an omission of an important service duty, a potential claim can result. Expert witness testimony is often a feature of litigation in these claims. It can determine the definition and scope of the malpractice.
Any profession that provides a service instead of a product has a professional liability exposure. Almost any product includes some element of design.
So what separates a product from a service?
A service is defined by the acts of the professional, not by the finished product or outcome.
As an example, concrete contractors are covered by completed operations insurance, while construction managers who select and supervise the concrete contractor fall under professional liability.
If you provide a professional service, act on behalf of a client, or provide an outcome or consequence rather than a specified product or completed operation, you need professional liability insurance.
Professional liability policies define the acts, errors, and omissions covered both in general and specifically. Restrictions or exclusions are enumerated as well.
Standard forms exist for many professions, however, if different forms are used it pays to have knowledgeable advice from a broker like Gunn Mowery.
With reputation and time away from the business or practice at risk, consider obtaining professional liability insurance. A Gunn Mowery representative can walk you step-by-step through the process and provide you with various options to help you with your needs. Call us toll-free today at (800) 840-1243 or e-mail us at
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