If you're a business owner, you spend most of your time thinking about how to grow your business. But it's easy to remember one of the fundamental building blocks: professional liability insurance. What is it? Why do you need it? And what does it cover?
Why Does Your Business Professional Liability Insurance?
- You may be sued.
- You may be held responsible for your actions or the actions of someone who works for you.
- If you give advice to customers, you might be sued.
- You may be held responsible for the actions of other people on your property or in your building/office space.
What Does Professional Liability Insurance Cover?
Professional Liability Insurance can help protect you against claims of negligence. It covers legal costs in the event that a lawsuit is brought against you and can even cover damages or injury to third parties. It also helps pay for legal fees, and it will pay for your defense if you are found not guilty of any charges. Professional liability insurance can cover the costs of lawsuits over:
- Work errors or oversights
- Undelivered services
- Missed deadlines
- Budget overruns
- Incomplete work
- Breach of contract
- Accusations of negligence
Who Needs Professional Liability Insurance?
Professional Liability Insurance protects professionals from claims and lawsuits. If your advice or work injures someone, or if they believe their property has been damaged by something you did, a claim can be made against you. Professional liability insurance helps protect you from these claims and ensures that your business stays protected. Firms like these should have professional liability insurance.
- Accountants
- Lawyers
- Contractors
- Consulting agencies
- Real estate firms
- Architects, designers, and engineers
- Real estate brokers
- Financial consultants
- Accountants and bookkeepers
- IT professionals and programmers
- Marketing and advertising professionals
Conclusion
When you're starting a business or running a current business it can be tempting to focus on marketing and sales. However, there are many other aspects of the business that you should be equally concerned about. Professional liability insurance is one of those aspects that need careful consideration because it will protect your business against lawsuits and claims of negligence.