Frequently Asked Questions

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Professional Liability FAQ

Professional Liability insurance—sometimes called Errors and Omissions (E&O) liability insurance, protects you and your business from bearing the full cost of defending a lawsuit against you pertaining to “negligence” or “failure to perform.” Those who perform services for others can make mistakes, overlook a critical piece of information, forget to do something, misstate a fact, be misunderstood or misinterpreted, misplace something, etc. and have the potential to be sued by clients or other third parties. Significant risks can be mitigated by an affordable Professional Liability insurance policy that can help protect against allegations such as:

  • Error, omission, or negligence in providing a service
  • Failure to provide a service
  • Violation of good faith
  • Overpromising
  • Improper documentation
  • Malpractice
  • Mismanagement
  • Misrepresentation of facts
  • Nondisclosure
  • Violations of state and federal law
  • And others

There are a wide range of occupations that use Professional Liability insurance ranging from consultants and hair stylists to event planners and accountants, and beyond. In today’s hyper litigious world, if you provide a professional service to others for a fee, you have Professional Liability exposure. Professional Liability Insurance often is the most important type of insurance that a company can purchase, as it protects the individuals and the company from potentially catastrophic litigation costs associated with claims relating to negligence or product failure. Many contracts require that you have Professional Liability Insurance and, even when it’s not required, for our prices it’s worth the added peace of mind. Preparation isn’t everything about building and running a business but without being prepared you can lose everything you’ve worked so hard to build. No matter what Industry you’re in, people make mistakes, people point fingers and people misunderstand – when they do, BizInsure ensures you’re ready. Even if you have done nothing wrong, but a client alleges negligence on your part, the policy will still protect you and pay the legal costs in defending you.

Consider the impact of a $100,000 lawsuit…or a million-dollar lawsuit on you and your business. Most small companies can’t absorb that kind of loss without devastating consequences. It’s important to remember that in the current business climate, you don’t have to do anything wrong to be sued. In fact, a large proportion of lawsuits are meritless. Regardless, such lawsuits must be defended, and that can be costly. Professional Liability insurance covers these legal defense costs and helps protects you from a current business climate comprised of:

  • A lawsuit-conscious public fueled by media publicity
  • An overabundance of lawyers
  • A belief that everyone deserves to be compensated
  • The idea that there is always a “deep pocket” with the ability to pay
  • An escalation of court settlements into the millions of dollars
  • Punitive damages that in some states can be doubled or tripled

A Professional Liability lawsuit can be triggered by almost anyone who is “touched” by the professional service and there is a very broad spectrum of potential for Professional Liability exposure.

Sample Situation A: Site designer sued for delayed product delivery
A Web site designer was hired by a Fortune 500 company to design a Web site that would be radically more advanced than any competitor sites. The timeline indicated by the Web site designer put the site online within four months. Two months into the project, several key personnel left the Web site design team, and the company scrambled to find other qualified personnel to complete the job. After an additional three months, the site was still not operational, but one of the client’s competitors had already launched a site that was an instant success. The client sued the designer for $6M in lost sales. The designer settled the claim for $ 4.75 million, $1 million of which was paid by the designer’s E&O policy. The remainder of the loss was uninsured.

Sample Situation B: Management consultant sued for offering negligent advice
A management consultant was hired by a small manufacturer to recommend strategies for increasing productivity. The management consultant identified three key areas in the production process that were causing bottlenecks. One recommendation was to expand the factory, another to change equipment, and a third to increase staff. The client accepted all the recommendations. In order to make the necessary capital improvements, the manufacturer had to shut down temporarily for two weeks. The client completed the expansion, increased staff, restarted operations, and started working to make up the productivity lost during the two-week shutdown period. However, one year after the substantial capital improvements were made, the client’s productivity actually diminished. The client sued the management consultant for offering negligent advice and was able to recoup most of the cost of the capital improvements from the management consultant’s E&O policy.

Most often it does not. General Liability insurance covers claims relating to bodily injury and property damage of others, and typically excludes claims related to the delivery of professional services. The liability risk associated with your professional errors, omissions and negligence can be far greater than those risks covered by a General Liability policy.

Certain professions such as doctors, lawyers and certified public accountants pay more for this coverage than other businesses. But coverage for independent professionals and small to midsized businesses can often be very affordable. Small businesses or sole proprietors often pay less than $350 per year for coverage and these premiums can often be financed, bringing monthly payments to less than $30.

Most policies cover all employees of a company as well as the corporate entity itself. Most policies can also be easily extended to cover independent contractors that you may hire or other roles such as volunteers or part-time employees.

Examples of things that are often NOT covered by these policies include: criminal prosecution in which you are convicted, allegations that are covered by other insurance policies (i.e. employment issues, bodily injury and property damage claims, auto claims, etc.), fraudulent acts that are proven, and acts outside of your typical scope of services.

One of the key benefits of this insurance is that most insurance carriers will pay your defense costs and find and manage outside counsel to represent you. Most insurance companies have pre-selected attorneys who specialize in handling defensive claims. Click here to learn more about our carriers.

BizInsure helps you control your Professional Liability costs by providing multiple options from several insurance companies who offer this coverage at competitive prices. Our premium model is less expensive than most quotes you can obtain from traditional “brokers.”

Yes, of course! Consider us your ‘virtual broker.’ Although the process is streamlined and automated to save costs, you’re never left out in the cold. Our friendly, knowledgeable support team is available at every stage of the process to help with anything a traditional agent would help you with – complete the application process, answer questions about your policy, file a claim, get ready for renewal, etc. After your purchase, as your business grows and evolves we provide ongoing service to help you stay on top of your insurance requirements over time. To get started either fill out the online application or call one of our friendly agents today at 1-877-900-5115.

General Liability FAQ

General Liability insurance is the most basic type of business insurance that you can purchase. Our General Liability insurance coverage (also known as Commercial General Liability insurance, or Business Liability insurance) protects your business from third-party claims of bodily injury, related medical costs, and accidental damage to another person’s property.

Whether an accident is your fault or not, or the accusation is true or meritless, general liability coverage will protect your business against covered claims by paying defense costs and any damages up to your chosen policy limit.

Uncertainties in managing and running day-to-day operations are inevitable in the modern world. Any small business should seriously consider obtaining General Liability protection. While many customers are required to have proof of General Liability insurance before entering into a contract, below are a few guidelines, and typical liability scenarios, to help assess if this is the right insurance for you.

Do you or your employees…

  • visit a client’s place of work? Do clients ever visit your work site?
    • Example: While visiting a client’s offices, your client trips over your briefcase and gets injured.
  • have access to a client’s equipment? (i.e., a client’s server, computers or other tools).
    • Example: While moving the client’s server you drop it and it breaks.
  • use third-party locations for any business related activities?
    • Example: While having a launch party at a rented venue, your client gets hurt by a poorly stacked chair.

The cost varies based on specific needs as they relate to the work you do and your location however, our quotes start as low as $30/month. You can complete the entire transaction online or speak to a licensed agent who can walk you through the process and help you find the right coverage to meet your exact needs. Get an online quote now or call one of our licensed professionals at 1-877-900-5115 to find out just how competitive we can be.

BizInsure’s mission is to become the primary one-stop shop for meeting the insurance needs of independent professionals and small businesses nationwide. We’re already making great progress toward that end and one of the ways that we will get there, is by partnering with the right insurance companies. All of our partners are ‘A’ rated (Excellent) by A.M. Best and are competitive about meeting the needs of our customers. We partner with forward-thinking insurance companies that are willing to drive the insurance industry to the bright future of affordability, reliability and convenience.

Business Owner’s Policy Insurance FAQ

Please click here for a detailed definition of General Liability insurance. Now, take all that is covered under General Liability insurance and ADD business equipment coverage for your physical assets (leased or owned) – that’s standard BOP! Business equipment insurance covers all your business furniture and apparatus at up to five different office locations, which includes accidental damage or lost property for its replacement value. BOP coverage also includes the personal property of others if you are liable for its loss or damage.

For many small but expanding companies, buying a BOP to secure General Liability insurance coverage is an affordable way to protect themselves against multiple common business exposures at a singular competitive price. With BOP add-ons you can completely customize your protection by combining several types of insurance coverage into one convenient package. You can supplement basic BOP with coverage for:

  • An office building you own
    • Example: If your business can’t operate because of an insured loss, such as a fire.
  • Owned or leased vehicles
    • Example: If you or one of your employees are in an accident while driving for business purposes and your company is held liable.
  • Electronic data loss
    • Example: If you lose mission-critical data due to a fire or virus which results in loss of income.
  • Commercial crime
    • ü Example: If one of your full-time or temporary employees is accused of dishonesty, forgery or theft of a client’s property.

Commercial liability is an important consideration for independent professionals and small businesses. BOP is an affordable way to be covered on multiple fronts with one policy.

Here are a few questions to help you evaluate if you are a good candidate to benefit from BOP for your business.

Do you or your employees…

  • need general liability insurance coverage?
  • use your personal car or rent cars for business use?
  • own or lease business equipment such as computers, printers and furniture?
  • own the building at which you work and need to insure the property?
  • own and work with large amounts of data on a regular basis?
  • have employees that could act dishonestly or steal clients’ property?

Still have questions? Give our licensed agents a call at 1-877-900-5115.

BizInsure’s mission is to become the primary one-stop shop for meeting the insurance needs of independent professionals and small businesses nationwide. We’re already making great progress toward that end and one of the ways that we will get there, is by partnering with the right insurance companies. All of our partners are ‘A’ rated (Excellent) by A.M. Best and are competitive about meeting the needs of our customers. We partner with forward-thinking insurance companies that are willing to drive the insurance industry to the bright future of affordability, reliability and convenience.

Glossary of Insurance Terms

Overall: The following information is provided as general information; it is not intended nor does it replace a thorough understanding of your own policy or supersede the specific language of any policy. Also remember that Professional Liability policies are not standard, each differs. The terms and definitions presented here may be different from what is contained in a specific policy.

Admitted carriers are protected by the state’s insurance funds in case of a financial default of the insurance carrier. There are payment limits by the state fund and these are usually less than an insured’s Professional Liability limits. Non-admitted carriers are not protected by these state funds.

An aggregate is a total. The total amount of liability for all claims in one policy year shall not exceed the limit of liability as stated on your certificate of insurance.

A.M. Best is a Rating agency that provides information about the relative financial strength and claims paying ability of an insurer. Best’s Credit Ratings are independent opinions regarding the creditworthiness of an issuer or debt obligation. Best’s Credit Ratings are based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile, or, where appropriate, the specific nature and details of a debt security. The complete Best’s Credit Rating Methodology is available.

A demand for money or services; also the filing of a suit or the starting of arbitration proceedings naming you and alleging injury or damage.

Most professional liability policies are Claims Made or Claims Made and Reported. The insurance carrier that carries the current coverage is liable for the claim when the claim is reported, not when the act occurred. Versus an occurrence policy where the insurance carrier that was on the risk when the act occurred is liability for the claim regardless of when it was reported. The major importance of this is to continue to have coverage for Prior Acts in the future, an insured needs to continue to maintain a Claims Made Policy or have an Extended Reporting Period or Tail purchased to cover the acts in the past.

Limits the amount paid by the insured for deductible expenses to the amount shown no matter how many claims are initiated during the policy period.

With this option the insured only pays the deductible if there is an indemnity payment

A sub-limit that will cover the costs of defending a claim without using the Limit of Liability. Once this is exhausted generally the Limit of Liability is reduced to pay for any additional defense costs.

Insurance coverage that pays once the primary insurance is exhausted. It is very important that the primary and excess policies have the same effective and expiration dates.

Defines what is not insured by this policy. You need to read this section carefully as certain policies by exclude a common area of your practice.

Commonly referred to as Tail coverage, this provides coverage after a Claims Made Policy expires or is no longer in force for acts that occurred during the time a Claims Made Policy was in-force. You generally have a right to purchase this coverage (within 30 to 60 days) whenever a policy is not renewed. It does not provide any coverage for any future acts.

When one insurance carrier will not provide all of the needed insurance coverage, other carriers may be willing to provide Excess Insurance to provide the necessary limits. A Following Form Policy uses the terms and conditions in the primary insurance policy to cover and settle losses. This helps prevent uninsured insurance exposures that might result if the policy language between the underlying coverage and the Excess Insurance are different.

This is the clause contained in many Insuring Agreements that states that even though the insurer will not settle a claim without the insured’s consent, the insurer’s exposure to the loss is limited to the amount that would have been paid if the insured had taken the insurer’s recommendation. In other words, if an insured does not accept the insurer’s recommendation, then the insured is liable for any additional costs.

Most policies exclude coverage for deliberate or criminal acts. This coverage protects the other partners or principles from the deliberate acts of another employee or partner if the others had no knowledge of the actions.

The Insuring Agreement defines what and who is covered and the responsibilities of all parties.

The maximum indemnity and claims expenses amount that the insurer will pay for all claims reported during the policy period.

The maximum amount of coverage agreed upon in the insurance contract that the company would pay in the event of a loss.

This is one of the most important definitions in any policy. It defines who is an “insured” and who is considered insured. These definitions differ from one policy to the next and it is very important to read your particular policy to determine if all operations are covered as expected.

The failure to exercise the proper degree of care required by a prudent person.

Most Professional Liability policies are annual, but some are multiyear. This is the time between the effective date and expiration date of the policy.

Acts that occurred prior to the current policy period may not be covered unless the current policy has a Prior Acts Date prior to the occurrence of the act or shows no Prior Acts Date.

This is the date that if an act occurred prior to this date, even if it is reported during the policy period the act is not covered. It is very important to maintain your Prior Acts Date once established to prevent gaps in coverage.

This generally occurs during the 1st year of a Claims Made Policy. This is when the Prior Acts Date equals the Policy Effective date. With a policy that the Prior Acts Date equals the Policy Effective Date there is no coverage for any acts that occurred prior to the effective date of the current policy even if reported during the policy period.

Those services for which you are licensed, trained, and qualified to perform in your capacity as a healthcare provider in the professions shown on the Certificate of Insurance. Your services while acting as a member of a formal accreditation, standards of review, or similar professional board or committee, including the directives of such board or committee are also included in this category.

A specified maximum amount of insurance that a life insurer is willing to carry at its own risk on any one life without transferring some of the risk to a reinsurer.

Uncertainty of a financial loss; term used to designate an insured or a peril insured against

Umbrella coverage is insurance coverage that extends the terms of a regular insurance policy once coverage limits for the regular policy have been reached. Specifically, umbrella coverage is for people who want protection against a large jury award that is not covered in their standard policy.

The process of identifying and classifying the degree of risk represented by a proposed insured.

MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
THEODORE WELLS
THEODORE WELLS
19:49 09 Sep 21
Daniel Patrick Sullivan
Daniel Patrick Sullivan
16:49 07 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent Doe
Dissent Doe
22:21 02 Sep 21
Sheree Williams
Sheree Williams
19:39 27 Jul 21
Eugene was Awesome!!!!
Lakesha G
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
Lane
18:22 22 Jun 21
Jugrid Ombisi
Jugrid Ombisi
16:26 15 Jun 21
Done in less than an hour!
William Opperman
William Opperman
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda Jones
Brenda Jones
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik Solberg
Arik Solberg
16:34 10 May 21
Adj Ako
Adj Ako
16:47 05 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba Perez
Elba Perez
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper Martinez
Casper Martinez
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic Films
Poetic Films
21:00 07 Apr 21
Sandra Darjean-Murphy
Sandra Darjean-Murphy
17:48 31 Mar 21
Jusephine Ghong
Jusephine Ghong
17:58 23 Mar 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin Behm
Franklin Behm
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V Lapierre
Cassiopée V Lapierre
23:13 09 Mar 21
S & S Professional care llc Home Health Agengy
S & S Professional care llc Home Health Agengy
04:15 24 Feb 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie Woodruff
Stephanie Woodruff
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined Perez
Esined Perez
23:32 17 Feb 21
DIVINE FIJIANS HOME CARE SERVICES
DIVINE FIJIANS HOME CARE SERVICES
22:49 05 Jan 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe Wajdula
Joe Wajdula
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
Lisa Word
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda hale
rhonda hale
23:26 12 Nov 20
Owner (LPN)
Owner (LPN)
23:19 06 Nov 20
Cincere Browdy
Cincere Browdy
15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
Aileen Day
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
Michele Harris
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope jones
hope jones
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela Curry
Pamela Curry
16:45 24 Aug 20
Cameron Peek
Cameron Peek
19:25 24 Jul 20
Great and fast service!!!! The representative was very professional!!!!
Tanya Sweet
Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy Smith
Jimmy Smith
19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
James Lang
18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda Gray
Rhonda Gray
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
Paul Rising
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
Kristene Smith
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
Fre Hall
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn Torres-Gale
Dawn Torres-Gale
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
Graham Blair
22:12 23 Jun 17

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