To see if professional liability insurance is something you need, you first have to understand what it is.
Professional liability insurance, also known as Errors and Omissions Insurance, is a policy that helps cover a mistake made by your business or a wrongful act attributable to your company. Professional Liability Insurance helps businesses wether the impact of a significant mistake that may cause harm to a client or customer.
An example of this would be:
A tax preparer forgot to file a form and the mistake isn’t caught until many years later. If he didn’t have Errors and Omissions coverage then, his client could potentially sue him for interest and penalties.
Now that you understand Professional Liability Insurance and what it is, your next step is to see if it’s a policy your business needs!
This type of policy is designed for businesses that make a living off their expertise. The types of situations that Professional Liability Insurance covers:
- Work mistakes and oversights
- Undelivered services
- Missed deadlines
- Claims of negligence
Who needs professional liability insurance?
Contractors, Real Estate Realtors, Attorney’s, Doctors, Fitness Professionals, Beauty Technicians, Financial advisors, and more are just some of the industries that would require Professional Liability Insurance.
How much does Professional Liability Insurance Cost?
Determining how much Professional Liability Insurance will cost depends on a few different factors like:
- Any industry and risk factors
- Coverage limits and deductibles
- Business size
- Day to day operations
- Claims history