Professional Liability & General Liability Insurance for Private investigators can be a very expensive and risky business, confronting the Colorado Investigator with challenges. With the high cost and serious consequences of a professional liability lawsuit, comprehensive protection is especially important for investigative firms today.

Professional Liability Insurance Programs may have features that provide comprehensive coverage tailored to meet the diverse needs of investigative firms of all sizes and areas of practice.

Do I need professional liability insurance?

Professionals that operate their own businesses need professional liability insurance in addition to a commercial general liability policy. This protects them against financial losses from lawsuits filed against them by their clients.

Professionals are expected to have extensive knowledge or education in their area of expertise. They are also expected to perform the services for which they were contracted. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called "errors and omissions" liability.

Professional liability insurance is specialty coverage.

• Claims regarding your company's failure to provide an adequate level of professional service are handled by errors and omissions (E&O) insurance.

• Unfortunately, these days, it's not simply enough to deliver an outstanding level of service. Dissatisfied clients can still sue you if they believe they are in the right. And even if their claim has no validity, you're likely to still be responsible for any legal defense costs. E&O (also known as professional or malpractice) insurance protects against the heavy toll legal costs can take on your company's financial health.

• When shopping E&O policies, pay special attention to the fine print before you sign. Since there is no standard form, the terms of the policy can dramatically differ from insurer to insurer. In particular, check for what is covered or not covered. You don't want to find yourself fighting the insurer for coverage should a claim arise.

• Also check to see who is covered. Some policies will cover employees only while others will also cover subcontractors. If your business uses subcontractors routinely, you should look for the more broad coverage. Otherwise, you will need to check that your subcontractors have their own professional liability insurance.

Coverage pitfalls; check your policy

While some markets will give Personal Injury coverage and others will provide merely a sub-limit, some markets will exclude it from coverage.

• Wrongful entry or eviction or other invasion of private occupancy;

• The publication or utterance of a libel or slander or other defamatory or disparaging material, or a publication or an utterance in violation of an individual's right of privacy.

• Coverage for Identity Theft by Employees!

• Independent Contractors

Professional Private Investigators
Association of Colorado

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