Professional Liability Insurance Maryland

What is Professional Liability Insurance?

There are more than 634,000 small businesses in Maryland, making up 99.5% of all businesses in the state, according to data from the U.S. Small Business Administration.

Many of these small businesses provide their clients and customers with professional services or advice. No matter how careful someone is, there is always a chance that a mistake could be made. Even if it’s a small error or an innocent oversight, it could still lead to a legal dispute. That’s why small business owners should consider purchasing Professional Liability insurance in Maryland.

Also referred to as Errors and Omissions (E&O) Insurance, Professional Liability insurance protects your business against claims of negligence, misrepresentation or mistake. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.

For example, you provide a customer with professional advice that causes them to lose money. The customer decides to bring a lawsuit against your company as a result. A Professional Liability insurance policy can help cover the legal expenses of the court case and judgement.

What does Professional Liability Insurance cover?

Professional Liability Insurance in Maryland helps protect your business against both actual and alleged claims of errors and omissions that may have occurred while providing professional services. This often includes:

• Attorney Fees – The cost of hiring an attorney to defend your business in court.
• Court Expenses – Any administrative costs associated with your legal case, such as filing documents with the courts.
• Settlements or Judgements – The amount you pay to your client, either by settling out of court or by order of a judge.

Get instant quotes