Who Needs Professional Liability Insurance?

No matter how perfectly you try to run your business and meet your customers’ needs, mistakes can happen. If they do and lead to a lawsuit, professional liability insurance can help.

 

Many of our customers have asked us, “Who needs professional liability insurance?” The simple answer is: it’s a good idea to have coverage if you deal directly with customers and provide a professional service.

 

Professional liability insurance, also known as errors and omissions (E&O) insurance, can help protect your business if someone sues you for your professional services claiming:

 

Clients can sue your business if you make a mistake in your professional services. Even if you don’t actually make a mistake, you can still get sued if someone thinks your business is the reason for their financial loss. If that happens, E&O insurance can help cover your:

 

Without errors and omissions insurance, you’d have to pay these costs out of pocket.

 

This insurance even helps protect your business if you have temporary employees who make a mistake.

 

Be aware that professional liability insurance doesn’t cover all types of claims, though. For example, it won’t help if someone sues your company for bodily injury after a slip and fall. It also won’t help with claims that your business caused property damage to someone’s belongings. A general liability insurance policy can help with these kinds of claims.

 

So, when is professional liability insurance needed? And when it comes to your business, do you need professional liability insurance? In most cases, professional liability insurance isn’t required by law. But, you may need this type of business insurance if your:

 

It’s a good idea to check your state’s laws to see if your business needs professional liability insurance. If you don’t have this insurance when it’s required, you may have to pay a fine or penalty.

 

Consultants may have to carry professional liability insurance as a requirement before any work can start. Clients may require this coverage because it helps protect them from lawsuits if you make a mistake in your work.

 

If you make a mistake or error in your services, our professional liability insurance for consultants can help protect you.

 

We’re backed by more than 200 years of experience. Whether you own a small business or a large corporation, we understand every business owners’ needs are unique. Our specialists are here to help answer your questions and get you the right type of coverage for your business. They can help you understand how professional liability insurance works. From what’s considered as covered claims to a retroactive date, we’re here to make sure you know how your policy can help your business.

 

Get a professional liability insurance quote today and learn how we can start protecting your company.