What is Professional Liability insurance coverage?
Professional liability insurance coverage can help Florida business owners cover costs if they or one of their employees makes a professional mistake or faces accusations of negligence.
Florida professional liability insurance can help cover:
- Professional mistakes that hurt a client or other business financially
- Accusations of professional negligence such as wrongdoing or inaction.
- Misrepresentation of services
With professional liability insurance, Florida business owners may be able to submit a claim in a variety of situations, whether their company made an error or a client claims they did. For example:
- An Orlando financial advisor makes an error filing paperwork resulting in a client missing out on significant tax advantages and paying more than needed. Professional liability insurance in Orlando can help pay for costs related to the mistake.
- A Miami real estate agent shows a furnished property to prospective buyers and one of them accidentally damages a wall. Professional liability insurance in Miami could help the agent cover costs if they need to repair the wall or reimburse the seller.
What is the difference between Professional Liability and E&O insurance?
Professional liability insurance is also referred to as errors and omissions insurance, or E&O.
These terms are often used interchangeably and usually refer to the same coverage. Depending on your industry, one term may be favored over the other. For example, E&O is used primarily by insurance agents, real estate agents and property managers. Construction professionals have a specific contractor’s E&O option.
In most other industries, such as accounting, architecture, engineering and law, this type of coverage is known as professional liability insurance.
Is Professional Liability insurance required in Florida?
Most businesses in Florida are not required to have professional liability or E&O insurance. However, Florida errors and omissions insurance may be necessary to comply with specific industry standards.
For example, if you work on state or local government contracts, Florida E&O insurance may be required. Or if you are a healthcare provider, your workplace may require you to have malpractice insurance, which is a type of professional liability insurance.
Even when it’s not required, it can be beneficial to have professional liability or errors and omissions insurance. Florida business owners often choose this coverage for these reasons:
Financial protection
Small businesses in Florida with professional liability coverage may be better protected financially if they are accused of negligence or make a professional mistake that costs a client money.
Work contracts
Customers or clients may require a certificate of insurance before agreeing to work with you, especially on high-cost projects. Without professional liability or E&O insurance, Florida businesses may lose out on potential jobs.
Licenses and permits
The city where you work may require professional liability insurance to acquire certain business certifications or licenses.
For example, Florida medical providers are required to have professional liability insurance with minimum coverage of $100,000 per claim with a $300,000 annual aggregate to obtain or renew a medical license.1
What types of businesses might need Professional Liability in Florida?
Professional liability insurance is common coverage for professional services, including real estate agents, consultants, health care providers and financial advisors.
However, small businesses operating in many industries can benefit from this type of Florida business insurance.
Many small businesses in Florida could be at risk of making a professional mistake that could cost someone money, or they might face accusations of negligence or wrongdoing. Professional liability insurance can help resolve these types of issues quickly to protect your professional reputation and prevent customer confrontations.
For instance, if an insurance agent in Tampa gets accused of misrepresenting the coverage on a policy after a client’s claim is denied, errors and omissions insurance can help pay for a legal defense and other related costs.
If a client sues a Jacksonville architect, claiming that inadequate roof sloping led to water damage in their home, professional liability insurance could help cover costs related to redoing the job or defending against the accusation.
How much is Professional Liability insurance in Florida?
The cost of Florida professional liability insurance varies depending on many factors, including:
- The type of work that you do
- Your work experience
- The locations where you operate
- How many employees you have
- How high you set your limits
- Your insurance claims history
NEXT Insurance makes it simple to get affordable Florida professional liability insurance or E&O insurance online in around 10 minutes. Our monthly premiums for this type of coverage cost $45 or less for 52% of our U.S. customers.
Learn more about professional liability insurance costs.
How NEXT Insurance helps Florida businesses
NEXT provides professional liability insurance policies for Florida small business owners and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
