Professional liability insurance in South Carolina

Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm. Even a frivolous lawsuit can be expensive due to attorney’s fees, court costs, and other expenses.

Industries often at risk for professional liability claims include:

IT consultants and other tech professionals are susceptible to lawsuits related to system downtime, project delays, and coding errors that impact a client's bottom line.

In this industry, tech professional liability insurance is referred to as errors and omissions insurance. It's commonly bundled with cyber insurance into one policy—tech E&O.

Tech E&O provides crucial protection by covering legal defense costs related to all of the above, in addition to lawsuits stemming from a data breach or cyberattack.

Those who work in building design, such as architects and engineers, are at risk of a lawsuit if a client accuses them of making a costly mistake. For example, a bridge could develop cracks over time, or a project could be delayed for months due to unforeseen circumstances.

Insurance professionals, including agents and insurance brokers, deal with large amounts of financial data and at times have to use their best judgment in advising their clients. If a client doesn’t have enough coverage or the right type of coverage, they might blame their agent or the insurance agency for failing to make sure they were protected.

Even if you’ve done nothing wrong, a disgruntled customer might file a lawsuit if your advice leads to a financial loss.

South Carolina law does not require small business owners to have a professional liability insurance policy. However, you might need this coverage to sign a contract or to get a license in your field.

Professional liability is referred to as medical malpractice insurance when it applies to doctors and other healthcare professionals, such as therapists. South Carolina does not require physicians to carry malpractice insurance in order to practice in the state.

However, many South Carolina hospitals and health centers require malpractice coverage for doctors. It’s essential in a setting where a mistake could cause a bodily injury or worsen a medical condition.

South Carolina doesn’t require real estate agents to have E&O insurance, but clients may ask their agent to have this coverage and stipulate proof of insurance in business contracts.

Common errors & omissions claims in the real estate industry include misrepresentation of a property's size or condition, failure to disclose a property's flaws, and inaccurate appraisals.

For lawyers, professional liability is also known as legal malpractice insurance.

South Carolina does not require this coverage for individual attorneys. However, some clients or law firms may require their attorneys to carry this policy before agreeing to work with them.

Professional liability insurance covers your legal defense costs if you’re sued over a mistake in your professional work, and it's affordable for low-risk businesses.

Even if you’ve done nothing wrong, a legal battle can be expensive. In addition to your attorney’s hourly rate, you’ll likely be charged for administrative costs such as copying, filing, and travel expenses. You may also have to pay for expert witnesses to testify on your behalf, a court-ordered legal judgment, or a settlement to avoid trial.

Professional liability insurance covers all of the above, up to the coverage limits of your policy. The policy limits you choose should take into account how expensive it can be to fight a professional liability lawsuit. You also need to determine the amount of coverage required to obtain a contract or work in a certain field.

A professional liability policy covers a wide range of lawsuits, but it will not cover intentional harm you cause to others. Most insurance companies exclude:

• The illegal violation of any law, regulation, or statute
• Any services you provide under the name of another entity, such as a subsidiary business or organization not listed on your policy
• Defamation, such as libel and slander
• Discrimination

General liability insurance does not include professional liability coverage, though both policies cover claims from customers.

In short, general liability provides financial protection against accidents involving people outside your business, while professional liability covers claims of negligence, such as failure to complete a project on time.

General liability covers the most common types of customer and client claims. That includes customer injuries, customer property damage, and advertising injuries. If a customer falls and suffers an injury at your office, it would be covered by your general liability policy, which would include your legal defense costs.

If someone sues you over unsatisfactory work, it would be covered by your professional liability coverage. Read more about general liability vs. professional liability insurance.

Complete Insureon’s easy online application today to compare insurance quotes from top-rated U.S. insurance companies.

Our South Carolina licensed insurance agents can help answer any questions and find coverage options that match your specific needs. Once you find the right commercial insurance for your business, you can begin coverage and get your certificate of insurance in less than 24 hours.