One negligence lawsuit could ruin years of hard work for your business even if no negligence was found. Most Connecticut insurance companies offer professional liability insurance, which can protect your business against claims or lawsuits due to negligence or error. This type of insurance is often called Errors and Omissions Insurance. If your company receives a claim or lawsuit of negligence, error, misrepresentation, violation of good faith, or a failure to perform a service, professional liability insurance should cover the cost of the claim or for defending your lawsuit. Your errors and omissions insurance coverage will likely not include coverage for any litigation for criminal charges.
Certain professions require professional liability insurance, such as malpractice insurance for the medical field, but most types of businesses have the potential to be threatened with a lawsuit due to negligence or error. Most professional liability insurance is on a claims-made basis, which covers claims made only during the policy period, but often an endorsement can be added which covers claims made retroactively. Professional liability insurance may not be covered by your general business liability insurance. It may require a separate endorsement or business owners policy which specifically includes it. Connecticut insurance companies, particularly those who specialize in business liability insurance, can help you determine if your business needs professional liability insurance.