Do You Need Professional Liability Insurance?
Professional liability insurance is also often called errors and omissions and it protects businesses from the costs that they might incur if they have to defend their services against negligence lawsuits or other error claims. Any business that provides expert advice will want to consider this kind of insurance in addition to other coverage.
Succeeding In Your Industry
Finding success in any industry can be hard and while you strive to do your best and keep customers and clients happy, you can’t keep everyone happy at all times. Even if you don’t feel you have made a mistake, things don’t always go according to your plan and there are always two sides to every store. Having small business insurance that covers professional liability can help you in the event that something goes wrong—even in someone else’s eyes. This type of insurance is created to help service professionals succeed so one lawsuit doesn’t take down the business.
Professionals Who Need The Coverage
Professional liability insurance saves certain professionals when they make a mistake, or when a client thinks they have made a mistake and takes them to court. Some states require professionals like doctors and lawyers to have this type of insurance. This insurance is more commonly called malpractice insurance for them. But even if you’re not in those professions, the coverage can come in useful in certain situations. Others who could benefit include real estate brokers, accountants, financial consultants, engineers, architects, designers, IT professionals, marketing and advertising professionals and more. For any of those individuals, they are providing services and advice to clients that could cause harm as a result. Even if the client doesn’t have merit and you win the case, defending yourself in court can be very expensive. Having to pay for those costs out of pocket can take your business into debt or force you to close down.
It’s Not About Careful Work
Even if you are very careful about your work, mistakes can happen and others can perceive mistakes, even if they don’t exist. You might also have employees that don’t follow the training you have provided or who make mistakes that then fall back on you and your company name.
Liability Insurance Coverage Doesn’t Cover…
Professional liability insurance takes on a number of claims, but it won’t help you with clients are injured physically because of products or services. It also doesn’t cover intentional wrongdoing or illegal actions including false advertising. It won’t cover you if there is property damage or employee discrimination.
Liability Insurance Coverage Takes On…
Liability insurance can cover a number of instances. If someone builds a website that goes down before a product launch, the client might sue for loss of income. If a doctor misdiagnosed a patient, causing them medical costs and mental pain, they might be sued. If an architect chooses materials that are low in quality and the building they are working on fails, the client has to rebuild, and the architect can be sued. These are just a few examples of what can happen, though there are hundreds or even thousands of others. If you are interested in coverage, contact Nickerson Insurance Agency, Inc to see what you might need to protect your business and interests.