Like making every possible effort to run your small business successfully and lucratively, you must take some measures to protect it from lawsuits filed by customers and clients. Otherwise, even one unfortunate incident or loss could destroy your finances and reputation while impacting your future income. To avoid this, small businesses should consider buying professional liability insurance (also known as errors and omissions insurance). The policy protects businesses by covering defense costs and attorney fees incurred from lawsuits filed against them for alleged professional errors/negligence.
How Can Small Businesses Benefit from Professional Liability Insurance?
A professional liability insurance policy can provide substantial benefits to small businesses, including:
- Covers Common Risks
Professional liability insurance covers your business against lawsuits resulting from various common risks, including:
- Missed deadlines
- Breach of contract
- Undelivered services
It pays for all costs associated with a lawsuit, including court costs, lawyer fees, settlements, and judgments, thus saving your out-of-pocket expenses while ensuring your business continuity.
- Protects Various Small Businesses
Professional liability insurance protects various small business professionals, including contractors, personal trainers, engineers, accountants, property managers, IT consultants, beauticians, architects, financial advisors, software developers, graphic designers, etc.
- Increases Clients’/Customers’ Confidence
Clients and customers will not hesitate to have a business tie-up with you on knowing that your business carries professional liability insurance that can compensate them for any financial loss resulting from your negligence or inaccuracies in the provided service. Therefore, your clients/customers can enjoy peace of mind throughout their partnership with your business.
- Covers Even Faultless Claims
Professional liability insurance will cover your business if you are at fault for resulting liability claims, so you don’t have to worry about lawsuits and expensive settlements.
- Protects Your Past Work
Most professional liability insurance policies are claims-made policies, which protect your business depending on when a claim is filed, despite the date of completion of work. The coverage for such policies starts from the date you and your insurance provider agreed to and continues for a set period even after the policy ends.
This kind of coverage will help you stay covered even if a client/customer decides to sue you for your past work (including services provided before some months or years).
Not Sure Whether Your Small Business Needs Professional Liability Insurance? Let’s Find Out.
You should buy professional liability insurance if your small business:
- Provides professional service or advice to clients/customers regularly
- Represents customers’ or clients’ requirements on their behalf
- Offers contractual service to clients
Now you know how professional liability insurance policy benefits small businesses. What are you still waiting for? Experience the benefits by buying the right policy that suits your small business’s needs, risk exposures, and budget.
Buy Comprehensive Professional Liability Insurance from Pittman
Whether you are a start-up or a growing small business, we have the perfect yet cost-effective coverage options to protect your business at all times against every possible risk. Contact us today at Pittman Insurance Group, LLC to get started on your customized professional liability insurance in North Carolina and surrounding areas.