Professional liability insurance covers your business in many different ways. There are many incidents for which your company may be held financially responsible. This includes personal injury, property damage, and various other events that may lead to financial loss for both your company and your customers. Purchasing a professional liability insurance policy will protect you from potential lawsuits related to any unsatisfactory services provided by you.
What Is Professional Liability Insurance
Also known as Errors and Omissions coverage, this policy covers your company if you or one of your employees makes a mistake while rendering services. Providing inaccurate information or not completing a job properly may lead to errors that adversely affect your customer. Retroactive dates are used to backdate this insurance coverage, thus allowing you to cover past events. You may also include an extended reporting period that will ensure that customers are covered for a specific period of time, usually two to three months after you cancel the policy. This ensures that both you and your customers are fully protected if the unthinkable were to happen.
The Extent of Coverage and Exclusions
Professional liability insurance can protect you against misrepresentation, negligence, and inaccurate or fraudulent advice. Talk to your insurance agent to learn about the extent of coverage available under any of these circumstances. Professional liability insurance covers many things, but it does not cover events that are covered by other policies.
- Bodily injury or property damage –
General liability insurance is used to cover both bodily injury and property damage. This will cover the costs of any medical expenses the injured party may incur. It will also cover the cost of any repairs that may be needed to fix their personal property that may have been damaged during the incident.
- Work-related injuries or illnesses –
Workers’ compensation cases can occur at any time. Accidents can happen no matter how hard both the employer and employee try to prevent them. Workers’ compensation insurance will be required to help you protect your employees.
- Data breach–
People who work from home but still use company equipment and VPNs are more vulnerable to cyberattacks and data breaches. A cyber insurance policy will cover the damages resulting from such incidents.
Is Professional Liability Insurance Really Needed?
Without adequate professional liability insurance in place, you will be left to cover large settlements on your own. Covering such expenses out of pocket could bankrupt your business. So instead of taking your chances with a catastrophic financial loss, look for the right professional liability insurance policy. Even though your company may continue operating for many years without anyone filing a claim, it only takes one instance for your company to experience a financial loss from which it will not be able to recover. Buying professional liability coverage is your company’s safety net to ensure its long-term survival.
Professional liability insurance isn’t optional if you plan to run a successful business. It can give you the financial security you need to keep your business functioning productively. At Burton A. Harris Insurance Agency, our team of experts can help you choose the right professional liability policy tailored to meet your unique business needs. Contact us today to get started!