A company that interacts with other organizations should carry professional liability insurance for business as protection from the high costs of litigation. This type of insurance pays for complaints and damage that result from bad professional advice. Here are essential points to know about the benefits of professional liability insurance.
What Is Professional Liability Insurance?
Professional liability insurance is a particular type of business insurance that’s separate from general liability insurance. It’s a type of insurance coverage that supplements basic business plans. It covers negligence and other professional mistakes such as copyright infringement. For a construction contractor, the coverage might pay for losses resulting from a missed deadline. It generally pays for lawsuits filed by clients because the results don’t meet the expectations explained in the contract.
What Does Professional Liability Insurance Cost?
Professional liability insurance for business policy starts around $300 per year, as additional coverage can be added, depending on the business risks. The other factors that impact the cost of the policy involve the amount of coverage, the type of business, its location, and what you set as the deductible.
What Isn’t Covered by Professional Liability Insurance for Business?
Small business professional liability insurance covers many scenarios in which managers or employees make mistakes. But it only covers some types of errors. While it covers inevitable accidents, it may not cover accidents unrelated to your field of expertise. If someone slips and falls at your establishment, it may be covered by the company’s general liability insurance policy but not a professional liability plan.
If a worker is injured on the job, they should be covered by workers compensation rather than a professional liability. The plan doesn’t protect against damage to tools from a disaster, which is covered by a business owners policy (BOP). Illegal acts are also not covered. Cybersecurity breaches require separate coverage.
Who Needs Professional Liability Insurance?
A wide variety of professions use professional liability insurance, particularly businesses that deal directly with the public. Lawyers, financial advisors, and insurance agents need professional liability insurance because these positions involve advising clients. Architects, engineers, and real estate agents need coverage due to their involvement with high-stakes projects.
Marketing and advertising companies need professional liability insurance for business to protect themselves against claims of infringing upon the intellectual property rights of competitors.
Several types of home business owners should consider professional liability insurance if they provide advice that has a dramatic impact on the service. A dog grooming service should carry the coverage in case a client doesn’t like what the professional has done to their pet’s appearance.
Any business consultant should consider getting professional liability insurance to safeguard against clients adverse reactions to the finished work. The same applies to professionals who judge aesthetics, such as barbers and beauticians. Journalists who write about business entities should also protect themselves with the right coverage to avoid getting financially drained by lawsuits that allege libel content.
Get Tailored Professional Liability Insurance for Business with Pittman!
If you are looking for professional liability insurance to cover your business, contact us today at Pittman Insurance Group, LLC, to get started. We will help you customize a policy specifically for your professional needs.