Businesses that offer professional services operate with the risk of being held liable for real or perceived failures in the services rendered, negligent acts, or misrepresentation of promised results. Some professional service firms incur a particularly high level of risk exposure including those that:

• Manage or transmit sensitive data
• Offer personal or professional advice
• Hire or supply third-party contractors
• License their products or services to third parties

Unfortunately, not all business risks fall neatly into standard business insurance policies, and service companies can be left with dangerous exposures. That's why Philadelphia Insurance Companies (PHLY) offers customizable miscellaneous professional liability (MPL) insurance, also known as errors and omissions coverage, through our Cover-Pro insurance product.

To avoid costly lawsuits, it's important that business operators understand their risks and have adequate misc. liability coverage.

Misc Professional Liability: Helping Clients Understand Professional Liability Exposures

Each business has exposures unique to its professional niche, and without the proper insurance coverage, costs can be devastating - even when claims are false.

Just the defense costs of an MPL claim can be anywhere between $50,000 and $500,000. If the case is lost and a claim payout is necessary, it could cost a business millions of dollars.

In an MPL claim scenario, a client or customer may accuse a service provider of negligence or professional error. This can include:

• Provision of misinformation that results in real or perceived damage to the client
• Failure to deliver services as promised
• Libel or slander injury claims
• Negligent acts committed by current, former, or temporary employees

To anticipate and manage professional liability risks, agents need to understand the unique exposures of their clients and help them obtain an MPL insurance policy that will cover those risks. To help build a picture of your client's exposures, ask them these assessment questions:

• What services do you provide to your client(s)?
• What type of information do you have access to?
• Who may be using your work beyond your immediate customers?
• Will your customers be further distributing your information or recommendations?

A business is often most exposed through their partnerships - coverage needs to reach as far as exposure, and third-party exposures need to be written into their policies.

Thinking Beyond Contract-Specific MPL Coverage

Often, insureds will get a miscellaneous professional liability policy because a specific client contract requires it. They may be tempted to cut costs and terminate the coverage when the contract is complete.

However, in general, the benefit of cutting costs now isn't worth the potential cost later. Businesses have professional exposure whenever they provide a professional service, even if a contract doesn't require miscellaneous professional liability coverage. Without a miscellaneous professional liability policy, the service provider is left to incur the full cost in the event of a professional liability lawsuit.

Customizing MPL Insurance Policies

Every business situation is different and has unique exposures, so customized coverage is key. Rather than using an online portal that relies on drop-down menus to build cookie-cutter insurance policies, talk directly to an insurance representative who can understand your client's unique situation and provide customized coverage.

The PHLY Difference

At PHLY, we have 20+ years of experience in the Management and Professional Liability market and provide errors and omissions coverage for dozens of professional service niches. Our representatives are available to help build unique policies for unique exposures and assist with any inquiries concerning MPL insurance.

With PHLY Cover-Pro, multiple professional services can be written under the same policy for clients with diverse business offerings. Additionally, our wide range of endorsements enables businesses to expand coverage for special needs like crisis management, cancellation protection, travel delay, political unrest, and more.

PHLY also offers a number of other coverages for professional service firms so they can meet all their insurance needs with a single carrier.

Additional PHLY Coverages

• PHLY Cyber Security Insurance
  Most businesses incur the risk of misuse, theft, or loss of sensitive data. To avoid the costly fallout from a cyber event, get Cyber coverage.
  
  
• PHLY Business Owner's Policy
  This package combines General Liability and Business Personal Property coverage into one policy for business operators with less than $5M in annual revenue.
  
  
• PHLY Crime Protection Plus
  Crime Protection Plus guards against a wide range of crime exposures including employee theft, forgery, and fraud. This coverage is especially important for work environments where employees have access to client funds or work on client premises.
  
  
• PHLY Employment Practices Liability
  This is comprehensive employment coverage for claim scenarios such as wrongful termination, sexual harassment, discrimination, and more.
  
  

Partner with PHLY to Cover Professional Exposures

In addition to flexible and robust coverage, PHLY offers industry-leading risk management services. This includes access to industry-specific courses at no additional cost and two hours of free legal consultation for PHLY Management and Professional Liability policyholders through our risk management hotline.

On top of our experience and risk management services, PHLY also stands out for our financial stability with a consistent A++ (superior) AM Best rating and as a recognized member of Ward's Top 50 Property-Casualty Insurance Companies. As a testament to our commitment to employees and clients alike, Business Insurance Magazine has recognized PHLY as one of the Best Places to Work in the industry.

If you're ready to reap the PHLY advantage and design the unique coverage your client needs, speak with your PHLY representative or contact us today.