You may not know much about professional liability insurance and the idea may sound daunting, but it is a necessary policy that every business or person offering a professional service should have.
Professional liability insurance is not just your basic business insurance. We have five things you should know about it below.
Professional Liability vs. General Liability
One of the most common questions we often receive is “What is the difference between professional and general liability policies”. Simply put, a general liability policy protects against injury or property damage that occurs while doing business, while a professional liability policy protects against any lawsuits that stem from your professional services. For the best protection, every business should have both professional liability and general liability policies.
Professional Liability, Malpractice and Errors & Omissions Insurance
Another question we answer often is: “What is the difference between professional liability insurance, malpractice insurance and errors and omissions insurance?” It may surprise you that there are NO differences! The terms are often used interchangeably for the same comprehensive coverage.
It’s Not Just for Doctors
With over 40 years of experience, we have built programs for a wide variety of professional groups and national associations. Not only do doctors, attorneys and accountants need professional liability insurance, but professions like interior decorators, landscape architects, event planners, and consultants also need to properly protect their exposures.
Mistakes can happen, no matter what type of professional service you provide. We have the experience to help you identify the risks your business may face and determine your coverage needs.
Your Policy Covers More Than Just You
The right professional liability insurance policy will cover you and also your employees and subcontractors. As your company grows and you depend on others to handle more responsibilities and jobs, protecting their possible mistakes becomes more important.
Without It, A Lawsuit Could Put You Out of Business
Even if you do not make mistakes, disgruntled clients could still bring frivolous lawsuits against you. They may not be valid, but you likely still need to hire an attorney to defend yourself. If you do not have the funds readily available, the high cost of a legal defense could put you out of business. Professional liability insurance can help you pay costly legal bills.
If you’re inspired to get a professional liability quote for your business today, you can complete the form or call our Professional Liability team at 800-686-8080.