2 -MINUTE READ

FAQ Regarding Professional Liability Insurance

Mar 16, 2021

Also referred to as errors and omissions insurance or an E&O policy, professional liability insurance is coverage for professional services such as accounting, medical or healthcare, and legal work from claims filed by their clients for acts of negligence. Many of the professionals working in these fields don’t have an accurate understanding of their risks. Educating them shows the value of purchasing a professional liability insurance policy.

Answering Your Clients’ Questions

You will find that many clients have the same questions or misunderstandings about their errors and omissions insurance policy. Here are some of the ones most frequently asked and how you can respond. Not addressing these issues may lead to claims against your own E&O policy.

1. Why Do I Need Professional Liability Insurance?

Your field has unique liabilities and risks that are directly connected to the decisions you make. While you may be the expert on the issue, clients or patients who feel they have been wronged or have suffered harm as the result of a decision you made. Allegations of misleading or omitting important information, claims of providing poor advice, or rendering services that fall below expected standards can all lead to expensive lawsuits and costly court settlements. PLI is a financial resource to resolve claims filed during a policy period.

2. Is a Professional Liability Policy Specifically Underwritten for My Exposures?

Because the liabilities between professional fields vary, it is crucial that each policy be underwritten to address your client’s unique needs. IT consultants will have different liabilities from those who work in marketing, and coverage terms are written with the inclusions and exclusions that are applicable to a specific profession. Your clients are able to choose the policy limits and deductibles that best fit their business needs, but the specific nature of underwriting means they are only going to be paying for coverage that they need.

3. Can I Lower My Insurance Premiums?

Insurance premiums can often be a concern for any business or professional, and the risks of your client’s field and past claims against them can impact the cost of coverage. It is important to address their exposures through risk management strategies, as it can reduce the number of claims filed against them and lower the financial risk the insurer is taking on.

4. What is the Difference Between Claims Made and Occurrence?

Claims made coverage will respond to liability claims that are made during the active policy period even if the incident occurred before obtaining the policy (although it will be subject to a retroactive date on the policy). Occurrence coverage is a policy that will cover incidents that occur during the period a policy was active, even if the claim is opened after the policy was terminated.

Proactively addressing your client’s questions can help them understand their need for coverage. You can more effectively serve your clients when you understand the concerns and have good answers for them.

The Jencap Professional Lines Insurance Team

The Jencap Professional Lines Insurance Team

Whether it’s professional, management, or cyber liability, Jencap’s experienced brokers stay on top of industry trends and one step ahead of the competition, so they can offer the best guidance to you and your clients. Armed with decades of experience, Jencap’s dedicated professional lines team works tirelessly to navigate difficult risk placements, strict security control requirements, ever-changing market capacity, and unpredictable rate fluctuations.
Business Insurance | E&O policy | errors and omissions insurance | insurance claims | insurance policy | Professional Liability Insurance | professional lines insurance

EXPLORE FURTHER

TRENDS & WHITE PAPERS

Jencap Cannabis Insurance Insights

Preparing for the Future of Cannabis Insurance

Despite the growing acceptance and legalization of cannabis, it remains federally illegal in the United States, creating unique challenges for the industry. Jencap explores three possible future scenarios for federal cannabis reform and their impact on cannabis insurance.

WHITE PAPER | Q2 2023 | 7 MINUTES

Jencap Professional Lines Insurance

Your Guide to Cannabis Insurance

Marijuana regulations at the state level flip-flop on a weekly basis, making it difficult to keep up. When that happens, a new wave of laws and overturned court opinions will sweep across the country.The only thing changing as quickly as cannabis legislation is the unique insurance needs of this budding industry. We figured you could use a go-to reference for all things cannabis insurance that is current and reliable.

TRENDS | UPDATED Q2 2023 | 5 MINUTES

RECENT POSTS

INDUSTRY TOPICS

PUT JENCAP TO WORK FOR YOU

Partnering with a longstanding, specialized wholesaler like Jencap keeps you one step ahead and able to proactively meet your cannabis clients’ needs, even in a complex and ever-changing environment. Managing a cannabis business is challenging enough, but finding adequate insurance coverage shouldn’t be. With Jencap’s unmatched reputation and market clout, you’ll have access to a national network of non-admitted and A-rated cannabis carriers. You can rest easy knowing you’re working alongside experts who adeptly cut through the messy tangle of regulations and policy forms to find the coverage your clients need.

Stay Informed

Want to receive information from Jencap on timely marketplace trends, hot new product and program launches, and valuable product expertise that will set you up to win? Sign up below to receive email communications from Jencap.

Name(Required)
This field is for validation purposes and should be left unchanged.