Professional Liability Insurance2019-05-05T22:06:05+08:00

Commercial Insurance

Professional Liability Insurance

What is Professional Liability Insurance?

Professional Liability Insurance, also called Professional Indemnity insurance or Errors & Omissions (E&O) in the US, is a form of liability insurance which helps protect individuals or companies who renders professional advice and service against legal defence cost and claims by their clients for damages arising from alleged breach of professional duty of care, acts of negligence, errors and omissions in the course of their business.

Do you need Professional Liability Insurance?

Errors and omissions can happen at times even by an experienced professional. A mistake may cause a business to suffer financial loss from hefty legal fees and compensations. Professional Indemnity Insurance can protect your business as well as your employees against an allegation of negligence, error or omission from a third party when rendering your Professional Service.

Your business may require professional indemnity insurance if:

  • It provides advice/professional service to clients
  • It handles confidential information
  • It uses copyrighted material or intellectual property belonging to others
  • You belong to a professional body where Professional Indemnity insurance is compulsory
  • A client requires your business to be insured for professional indemnity insurance before awarding you a contract

Who needs Professional Liability Insurance?

  • Accountants/Auditors
  • Architects
  • Designers (web designers, graphic designers and interior designers)
  • Engineers & other construction-related professionals
  • Employment Agencies
  • IT /Technology consultants
  • IT professionals such as website developers, digital marketers
  • Management / Business / Human Resource consultants
  • Multimedia companies
  • Doctors, Surgeons, TCMs & other medical providers
  • Medical Aesthetic companies
  • Marketing Researchers
  • Instructors in physical sports, such as MMA, yoga, dancing

What does Professional Liability Insurance covers?

  • Any actual or alleged breach of duty
  • Negligent act, error, omission or misstatement
  • Breach of Confidentiality
  • Defamation
  • Intellectual Property Rights Infringement
  • Loss of Documents
  • Dishonesty of Employees
  • Defence Costs
  • Court Attendance Costs
  • Public Relations

Claim Examples:

Infocomm Technology: Accidental Leak of Customer’s Data

A small SAP consultant was performing a routine system patching/updating of their customer’s database and accidentally uploaded personally identifiable information to a server to which the public had access and was sued by the customer.

A Professional indemnity insurance can provide cover for privacy breach. To mitigate the data leak, the policy can also pay for the cost incurred to re-patch and retrieve the personally identifiable information along with the cost of engaging IT forensic investigators subject to the policy terms and conditions.

TCM: Medical Malpractice

A patient sought treatment at a TCM clinic to ease her shoulder pain. She was administered moxibustion treatment and suffered a third-degree burn and painful blisters on her arms.  She sued the TCM for alleged negligence.

If proven negligent, a professional indemnity policy can pay for the TCM’s legal defence cost and compensations awarded subject to the policy terms and conditions.

Why choose ALLEGIANCE?

In an environment of increased responsibility and accountability, professional liability insurance is becoming an essential tool of risk management for many professionals, allowing you to operate confidently and with the knowledge that your risk exposures are covered.

If your business requires interaction with members of the public in anyway e.g. making deliveries to customers, customer visitation, working at customers’ premises, etc, a Public Liability Insurance should also be part of your business risk management tool.

At ALLEGIANCE, we ask the right questions to identify your risks accurately, ensuring you get the right protection.

For a discussion, call us at 6238 3616 or email: