What is professional liability insurance and why do I need it?
Created by: Michael Andrew
Modified on: Tue, 4 Sep, 2018 at 7:48 PM
If you are a third party, the requirement is to have the equivalent of professional liability insurance (PLI), also called professional indemnity insurance (PII) or errors & omissions (E&O) insurance. This insurance should cover the cost of defending against a negligence claim made by a client (e.g. facility you provide service to, or the SAC). You are required to have a policy that provides at least US$1 million in coverage. For the application, you will need proof of insurance coverage (e.g. insurance certificate).
Second party applicants (e.g. brands) do not have to have PLI, however, they must sign additional indemnity form and depending on revenue may be required to name the SAC on general liability insurance as additional insured.
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