What is Professional Liability Insurance?
Sometimes called Errors and Omissions, this type of coverage addresses the liability we have with respect to members, clients and customers and the services and programming you as an organization provide. It will protect an organization for issues arising from professional acts, advice or consultation. Examples include testing mistakes, improper action on a medical release, interpretation of bylaws, counseling errors and numerous situations a non-profit can face.
My organization is protected by our national organization/department of education/group affiliation? Why would I need this?
Never assume someone else will assume your liability. We see everyday where an organization is left in the cold when an issue arises. While 90% of claims are the result of injuries or property damage, 35% of dollars paid can be attributed to Professional Liability and employment practice issues.
We have a General Liability Policy – won’t this cover any issues we might have?
No – General Liability policies usually cover bodily injury and property damage claims, not claims against an organization, employee or volunteer for a mistake made when providing business services or advice.
Isn’t Professional Liability the same as Directors and Officers Insurance?
Directors and Officers (D&O) Insurance provides protection to insureds who serve on a board of directors or as an officer of a corporation. Essentially, this type of insurance is for those who are in a managerial position and responsible for making major financial decisions or signing contracts.
Is Professional Liability Insurance expensive?
No – when weighed against the cost of a lawsuit and paying out of pocket for legal fees and damages, the cost of Professional Liability Insurance is much less expensive. Legal fees alone can cost thousands of dollars and are no guarantee of a positive outcome. In a world where lawsuits are commonplace, insurance is a necessity.
Can you recommend any resources to learn more?
The National FFA Organization (FFA) supports agricultural education and develops students' potential for leadership, personal growth, and career success (https://www.ffa.org/). HOSA – Future Health Professionals focuses on building a pipeline of future health professionals (https://hosa.org/). DECA prepares emerging leaders and entrepreneurs in marketing, finance, hospitality, and management (https://www.deca.org/). The Future Business Leaders of America (FBLA) aims to inspire and prepare students to become community-minded business leaders (https://www.fbla.org/). SkillsUSA is dedicated to improving the quality of our nation’s future skilled workforce through the development of personal, workplace, and technical skills grounded in academics (https://www.skillsusa.org/).