3 Ways Professional Liability Insurance Protects Your Business
The simplest way to understand Professional Liability Insurance is to think of it as the policy for people who make a living off of their expertise. Unlike General Liability Insurance, this policy addresses the unique lawsuits that experts may face due to the nature of their business. Some states don’t require experts to carry this insurance policy, but even if they don’t, it’s still a good idea to protect your finances in case of an unexpected lawsuit.
Who counts as an expert?
If your business can only operate by employing those with a particular, usually hard to obtain set of skills, then you’re on the list of those who should probably invest in this coverage. Some examples of a few common policyholders are:
- IT Consultant
What lawsuits does Professional Liability Insurance help pay for?
No matter how hard you try, you can never guarantee that you won’t slip up and make a mistake at work. There’s no such thing as playing it too safe when it comes to insurance.
Here are the types of lawsuits Professional Liability Insurance will help pay for:
- Work Mistakes. If you make a mistake that costs your client money, they have the right to sue you for any lost revenue. Professional Liability Insurance can help cover court costs, lawyer fees, and settlements or judgments.
- Undelivered Services. If you promise your client a result (that’s written in the contract) and your finished work doesn’t deliver on what was promised, your client can sue you to make up the losses by citing the contract. Professional Liability Insurance can help you make up that difference by paying for any of the client’s losses.
- Negligent Services. If your work isn’t up to par with industry standards, your clients can sue you for negligence. Since negligence is the legal standard of being unreasonably careless, the lawsuits can get a bit pricey. Fortunately, Professional Liability Insurance can help you pay the hefty legal bills.
As a business with an area of expertise, it’s always better to be safe than to be sorry when a lawsuit comes around. If you’re not sure if Professional Liability Insurance is right for your business, contact us here. We’d love to discuss how we can help keep your business properly insured.