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Many legal actions are brought years after the actual event occurs; therefore it is essential that company be protected in today's litigious society, especially with technology firms.
Professional liability insurance is coverage that protects a company and its employees against claims alleging negligent acts, errors, or omissions in relation to professional advice given.
Why companies need professional Liability Insurance?
- Business community are becoming more litigation conscious
- To provides financial security for firms or consultants
- Protect against financial exposure for legal negligence, error or omission
- The cost of defending legal proceedings is increasing.
- Financial exposure could cause company to cease trading
This policy provides cover for professionals against their legal liability to pay damages to third parties who have sustained financial losses due to the professional negligence of the Insured or their employees.
Who should consider to be covered?
- Advertising agent
- IT services and software developers
- Marketing consultants
- Publishers
- Educators
- Management consultants
Third parties rarely sue employed professionals, preferring to sue the employer; this is because company usually has more assets and an insurance policy. In most cases, the employer is always liable for the actions of the employee.
This make it more important for companies to protect themselves when they have executives and managers representing the companies to grow the business. |
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