Navigating the world of professional liability insurance can feel daunting, especially in today’s turbulent market. With rising premiums, increased scrutiny, and ever-evolving risks, staying ahead of the curve is more challenging than ever. However, understanding these dynamics and leveraging the right insurance solutions can help make all the difference for your clients.
What Is Professional Liability Insurance and Who Needs It?
Professional liability insurance is a safety net, protecting individuals who, in their professional capacity, make recommendations and offer advice and opinions to clients. Also known as errors and omissions (E&O) insurance, professional liability insurance offers vital coverage for professionals including lawyers, accountants, architects and engineers, and a diverse (and ever-expanding) range of professional consultants to provide coverage for the costs of legal fees, judgments, and settlements, as well as allegations of slander or libel, and claims that may arise from past projects.
The June 2021 collapse of a condominium tower in Surfside, Florida, is one memorable and tragic example of an event that underscores the crucial role of professional liability insurance – in that instance for professionals involved with the building to include architects, engineers, inspectors, and others.
Current Challenges in the Professional Liability Market
The professional liability insurance market has faced significant headwinds from multiple sources over the past several years.
- Corporate bankruptcies, layoffs, and cyber breaches in the wake of the pandemic have led to a surge in claims.
- Those layoffs, bankruptcies, and the resulting uptick in economic inflation has led many professionals to pivot to consulting.
- Increasing claims as a result of natural disasters continue to put financial pressure on carriers.
The demand for professional liability insurance has increased significantly at the same time that carriers are facing increased claims due to severe weather and other catastrophic events. Carriers are prioritizing profitability, reducing capacity, raising premiums, and applying a higher level of scrutiny to accounts – all while underwriters are experiencing a surge in applications for professional liability coverage. It’s a tough environment for carriers, underwriters, agents and brokers, and ultimately policyholders.
Seeking out experienced underwriters and knowledgeable agents – not to mention implementing robust risk management strategies – has never been more important for professionals in the business of providing advice and recommendations in lieu of more tangible products.
Professional Liability Insurance Expertise from MiniCo
MiniCo offers a range of professional liability insurance programs including Architects and Engineers Professional Liability, Lawyers Professional Liability, and Miscellaneous Professional Liability, as well as a monoline Cyber insurance program to address the growing risk of financial loss due to cyberattack and data breach for professionals and consultants in many business sectors. Contact an underwriter today to learn more or get a quote.
