Professional Liability Insurance
Remember that old saying, “mistakes happen”? Well, if you offer your clients a professional service such as legal advice or healthcare, you need to make sure you are covered for any possible mistake. Some states actually require it for your business.
The reason for ensuring you have professional liability insurance is that if your client believes you have made a mistake, they can sue you, which could have devastating effects on your business and financial situation. You’ll want to get a professional liability insurance policy if you have to sign a contract where you have to carry coverage, offer professional services directly to customers, or regularly give advice to clients.
Professional liability insurance will help cover you and your company in these such cases. This coverage is also known as errors and omissions insurance. In this post, we learn more about what professional liability insurance is, what it covers, how it works, and how i4SB can help.
What Is Professional Liability Insurance?
Professionals such as accountants, lawyers, and physicians often come across claims of negligence instigated by their clients. In this case, a professional without liability insurance may face huge financial problems. But having professional liability insurance protects the professional against claims stemming from business practices like negligence, malpractice, or misrepresentation. It’s always better to be safe than sorry.
Sometimes, this insurance may be called medical malpractice insurance (for medical professionals) or even errors and omissions insurance (for real estate agents). Since this type of insurance covers claims made towards the professionals themselves, it is not included in homeowners, business owners, or in-home business policies. And it typically only indemnifies the professional for claims made during the policy period.
What Does Professional Liability Insurance Cover?
As mentioned, this liability insurance will assist with the coverage of claims of negligence, misrepresentation, and inaccurate advice. And the frightening thing is that even if you have done nothing wrong, your client can sue your company even if they believe you made a mistake. And this will mean you have expensive legal fees to pay to prove your innocence.
What is covered?
- If your accounting firm makes a clerical error on a client’s account, and the error accounts for thousands of lost dollars.
- Suppose your florist business fails to deliver flowers on time for a client’s wedding and a client sues.
- Your real estate firm recently sold a townhouse to a client that wants to run a business from the townhouse. However, when the clients move in, the townhouse association informs them that they can’t use the property for a business.
What isn’t covered?
- You will need general liability insurance when someone is injured on your company’s property, or you damage another property.
- If your employees get hurt or sick due to their work – you’ll need workers’ compensation insurance.
- If your company loses confidential or sensitive client information – you’ll need cyber insurance.
How i4SB Can Help You
We know what it’s like to run a small business: it’s time-consuming and energy-draining at the best of times, and so we like to help our clients take some of that load off by “match-making” them with the right insurance company. All our insurance professionals come with years of experience, giving you peace of mind and freeing you up to focus on running your business.
Our process begins with a simple online questionnaire that we have designed to discover all the insurance needs of your business. We then consider factors such as the state your company operates in, the type of business, coverage amounts, reasonable pricing, etc. Based on specific needs, we contact the insurance expert best suited to your particular kind of business. And a partnership is made.
You can reach out to i4SB via our contact form online or with customer service at 1-505-880-2143. There’s absolutely no obligation to buy any of the products that the insurance companies we match you with are offering – it’s often just helpful to hear what they have to say once you’ve explained your business needs to them. Simply push the Get Started Now button below and let i4SB help you on your way to cyber insurance that suits your pocket and gives you peace of mind.