What is Miscellaneous Professional Liability Insurance?
Individuals who perform professional services can be held legally accountable for their actions. Since lawsuits can be costly, even bankrupting for individual professionals, CMI recommends that business owners protect themselves with professional liability insurance.
Miscellaneous Professional Liability coverage is available for:
- Answering Services
- Business Managers
- Collection Agents
- Escrow Agents
- Mortgage Brokers
- Public Relations Firms
- Training Consultants
- And many more
Why it’s smart to have Miscellaneous Professional Liability Insurance
A foreign company wanted to establish a manufacturing facility in the United States. They retained an American business consulting firm to provide recommendations for the proposed facility including plant locations, suppliers and employees. The firm provided its recommendations, which were followed by the company.
However, the facility experienced a number of problems, including lack of access to a skilled labor force and costs that exceeded the consultant’s projections. The company retained counsel and demanded that the consultant pay for their inaccurate advice. The consultant blamed the company for providing inaccurate information concerning its proposed facility. After the consultant paid $60,000 in defense costs, a settlement of $475,000 was reached before trial.