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Tag: errors and omission insurance

Who Needs Professional Liability Insurance?

If you’re a professional who provides a service to clients, like an accountant, attorney, or doctor, you’ll need professional liability insurance. It’s important to be able to protect yourself and your business from any type of wrongdoing or negligence. Professional liability covers your business in areas that general liability does not. The goal is to help professionals and business owners determine if this line of coverage is necessary.

Understanding Professional Liability Insurance

The purpose of professional liability insurance (also known as errors and omissions insurance) is to cover legal defense to protect a client-facing business from claims made by a third party. The main difference between general liability and professional liability is the risks they cover. 

General liability insurance will cover physical risks, like bodily injuries or property damage caused by your business’ daily operations. Professional liability covers financial losses resulting from negligence, errors, misrepresentation, or omissions that occur when you provide your services to others.

 

Who Needs Professional Liability Insurance?

1. Service-Based Professionals:

Professionals who provide advice, consultation, or services such as consultants, lawyers, accountants, architects & more should obtain coverage.

2. Medical and Healthcare Providers:

Doctors, nurses, therapists, and other healthcare professionals should have professional liability to help protect against malpractice claims.

3. Technology Professionals:

IT consultants, software developers, and tech service providers should consider this insurance to cover potential errors in their work when working with clients.

4. Creative Professionals:

 This is a necessity for designers, photographers, writers, and other creatives to protect against claims related to intellectual property or service disputes.

5. Real Estate Professionals:

Real estate agents, brokers, and property managers should get coverage to protect against errors in transactions or advice.

 

Key Scenarios Where Professional Liability Insurance Is Crucial

1. Client Contract Requirements:

Before engaging in a contract, clients may require proof of professional liability insurance.

2. Regulatory and Licensing Requirements:

In certain professions, professional liability insurance is mandated by regulatory bodies or for licensing purposes.

3. High-Risk Professions:

In high-risk professions, like the medical field, the likelihood of claims made is higher, making this coverage essential.

 

What Professional Liability Insurance Covers

  • Attorney’s fees
  • Court costs
  • Investigator’s bills
  • Settlements
  • Judgements 

Benefits of Professional Liability Insurance

1. Peace of Mind

After obtaining coverage, you can rest knowing your business will be protected against legal disputes that can result in high costs.

2. Reputation Protection

Professional liability insurance can help safeguard your business’ reputation by addressing claims in a quick and professional manner.

3. Business Continuity

This crucial coverage also ensures that legal disputes won’t financially cripple your growing small business.

 

Conclusion

In service-based industries like medical, technology, creative, and real estate professions, the importance of professional liability insurance cannot be overstated. Even if you believe your risk is minimal, the financial impact of a single claim can be overwhelming, especially for small business owners. It’s crucial to assess your unique needs and consult with an insurance professional to ensure you have the right coverage in place. 

 

Protect your business and your peace of mind with plans tailored specifically to your business. At EZ.Insure, our agents are highly trained and work with the top companies in the nation. We can compare all of your policy options while working with your budget to get your company all the coverage it needs. For a free quote call (866) 792-2602 to be connected directly to one of our agents today.

Protecting Yourself From Web Design Copyright Infringement

There are thousands of businesses out there making websites, all trying to create unique designs, logos, videos, text, and images. There is a danger that, when you create a website for your business, your design or logo might resemble that of another business. This could be totally coincidental, but it could still be a serious problem that ends in a copyright infringement claim. How will this affect your business? What steps should you take to protect yourself?

Copyright Laws

copyright logo in black and white with a red exclamation point
Copyright infringement happens when you recreate and display copyrighted work without the permission of the copyright holder.

You want people to notice your website, but what happens if another company notices that your website is similar to theirs? If your logo or design is similar to that of another company, you could face a legal copyright claim from that company. 

Copyright infringement means that a copyrighted work has been recreated and displayed without the permission of the copyright holder. Copyright laws protect creative and intellectual property against anyone copying or stealing the design. Intellectual property that is protected will include the words “all rights reserved” or “copyright.” The laws surrounding intellectual property protect:

  • The automatic right to your creative work from the moment of its creation.
  • The exclusive rights to use, copy, or modify your original content.
  • Any intellectual property without the need for the author, artist, or developer to publish or register their work.

Avoiding Copyright Infringement

If you decide to create your own web design, or hire a web designer to do it for you, you need to familiarize yourself with the laws in order to avoid copyright infringement. Copying a website, whether intentionally or not, will come with consequences. Here is what you can and cannot do:

  • You cannot duplicate copyrighted designs such as images, text, or source code.
  • It is illegal to use someone else’s logo or trademarked material.
  • You are allowed to use inspiration from different sites and incorporate them into your web design (as long as it is not the same exact material).
  • It is legal to recreate designs similar to those on another site using custom code.
  • If you use a website template, there will be thousands of other sites similar to yours and you have no rights to the source code.
  • A custom website gives you ownership of your unique design, and another site cannot legally copy it.illustration of a man with a suit juggling shields and a copyright logo

If the owner of the copyright can show proof of infringement, you will have to pay a penalty for each infringement. This is not the only consequence to copyright infringement: you will also have to pay attorney fees and will suffer damage to your business’ reputation.

Protecting Your Business

Accidents happen, and that could include accidentally copying another person’s design or image. Companies are constantly changing their logos or website designs in order to keep up with what is popular, and you could end up using a similar design or image. Protect yourself with a business owners policy that includes general liability insurance, which will cover your business property and intellectual property. You should also consider a professional liability insurance policy, or errors and omission (E&O) insurance. This will protect you from copyright infringement, covering:

  • Court costs
  • Legal fees
  • Damages
  • Alleged or actual negligence
  • Personal injury costs

Creating a website is vital for your business, but it can be difficult to create a design that does not seem similar to that of the thousands of other sites on the internet. The best thing you can do is protect your business and its reputation with the right commercial insurance policy. EZ.Insure understands just how important it is to protect your business from claims, as well as your designs from copyright infringement. We work with the top-rated insurance companies in the country in order to compare quotes and find the best plan for your business. To get free instant quotes, simply enter your zip code in the bar above, or to speak to one of our trained, licensed agents, call 888-615-4893.

Claim Or Lawsuit? Know The Difference For Your Business

The terms claim and lawsuit are often used interchangeably, but they have very different meanings and affect your business in very different ways. If you own a business, it is important to know the difference so that you can handle each situation properly, both in regards to the individual who is making a complaint against you and your insurance company. When someone files a claim against you (a claimant), it doesn’t necessarily mean that you will be facing a lawsuit. There are steps you can take to prevent major losses.

Claims

2 people sitting next to each other with paperowrk in front of them and a laptop

Claims are formal requests to be compensated for damages that are presented in writing to an insurance company. If you have been negligent, made a mistake, or caused some kind of loss to a customer or client, they can go to your insurance company with a claim, which could eventually lead to lawsuit.

When a customer files a claim against you, it will not necessarily cost you anything out of pocket if you are covered by a commercial liability policy. Once the customer submits a claim, your insurer assigns the case to a claim adjuster who then reviews the submitted documents and investigates further. Then a series of back-and-forth negotiations are initiated between the insurer and the claimant, which will result in a final claim amount being settled upon. The money is given to the claimant and the whole thing is over. As long as you have insurance when the incident occurs, then your policy will take care of it. 

brown gavel on the block
Lawsuits will cost you more than a claim, because you will need defense and can lose a lot more money.

Lawsuits

Lawsuits are more involved than claims, and will cost you much more than a claim made against your business. A lawsuit is filed if no settlement can be reached through the claims procedure, or when the demands of the claimant are not met. You can attempt to resolve the lawsuit via mediation, but, no matter what, a lawsuit will cost you more than a claim. This is because you will have to hire an attorney to represent you even in the case of a mediated suit. You could end up losing a substantial amount of money during a lawsuit, through both attorney fees and damages, which could greatly hurt your business.

What You Can Do

The best way to protect your business from both claims and lawsuits is to have commercial liability insurance. A general liability insurance policy will protect you in most instances, but a professional liability insurance plan will cover your business for claims resulting from a service provided. Errors and omission insurance, which falls under the umbrella of professional liability insurance, is claims-made coverage, which means the policy will cover claims on active policies regardless of when the claim happened. If you want to simplify your commercial insurance, a business owner’s policy can bundle all of your coverage needs into a single policy. It is best to stay ahead of the game before a claim is made against your business. Accidents happen, so it’s important to make sure you are protected.

illustrationof two businessmen in suits shaking hands while standing under a yellow and red umbrella.
Get properly insured to protect your business by speaking with an EZ.Insure agent.

Need Help?

Don’t make the mistake of getting the bare minimum commercial insurance coverage that just includes the basics. If you don’t have the proper liability insurance, you could end up losing your business. Liability coverage will help cover the cost of lawsuits, including your legal defense and any damages that you are ordered to pay. 

To find the right commercial insurance to fully protect you from a claim or lawsuit, you need to do a lot of research, because different businesses will require different policies. EZ’s agents are trained in the commercial insurance industry so we can help cover you and your business. We understand how important it is to protect something that you worked so hard to build. Our agent will go over all the policies you need and will find the best rates with the most coverage. To start comparing plans for free, enter your zip code in the bar above, or to speak to an agent, call 888-615-4893.

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