5 Questions Professionals Should Ask About Professional Liability Insurance

Every small business faces a variety of risks that insurance can typically help address. For business professionals, a Professional Liability policy can help protect you and your business against a unique set of liabilities.

If you provide others with a professional service, including giving advice or representing another’s interests on their behalf, you may want to consider a Professional Liability policy. Occupations that typically buy these policies include:

• Accountants
• Architects
• Consultants
• Engineers
• Home Health Providers
• Legal Services
• Personal Trainers
• Physical Therapists
• Real Estate Agents

These are just a small sampling of the types of professionals who may need Professional Liability insurance. However, you may still have questions about this type of coverage. Here are five questions that professionals should ask about Professional Liability insurance.

1. What is Professional Liability insurance?

This may seem basic, but if you’re just starting a professional career, you might be unfamiliar with this form of business insurance coverage.

Also known as Errors and Omissions (E&O) insurance, Professional Liability protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.

2. What does Professional Liability insurance cover?

Professional Liability insurance covers many types of claims including:

• Errors
• Omissions
• Mistakes
• Negligence
• Breach of contract
• Undelivered services
• Missed deadlines

If a client makes a claim against you that references one of the above events, your Professional Liability policy will help you defend yourself. This may include paying attorney’s fees, covering court costs, and paying any settlements or judgements you are ordered to pay.

Importantly, Professional Liability insurance protects you whether a claim is true or not. A baseless claim made by a client can be just as expensive to clear up as one where you are at fault. Your insurance policy will help you defend your professional reputation in court, regardless of whether the lawsuit has merit or not.

3. Is Professional Liability insurance required by law?

In some cases, you may be legally required to have a Professional Liability insurance policy. Some states require members of certain professions to hold minimum amounts of coverage to do business. Additionally, some professional associations may also set minimum coverage limits for their members.

Regardless of whether you are required by law to have Professional Liability insurance, your clients may still expect you to have a policy. Clients want to know that they are working with an individual who will act professionally and ethically. Professional Liability insurance lets clients know that you value your work and professional reputation enough to protect it.

Clients also want peace of mind that should something go wrong, you will be able to compensate them for any financial loss they experience. Professional Liability insurance can help provide this sense of security for your clients, but also for yourself.

4. Is Professional Liability insurance the only coverage I need?

While a Professional Liability policy can provide you with important protections, it may not be the only type of insurance that you need. Your small business may face a number of other common risks that require other forms of coverage, including:

• General Liability – This type of insurance protects businesses against the risk of customer injury and property damage.
• Business Owner’s Policy – This is a combination of policies, combining covers such as General Liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service.
• Workers’ Compensation – This form of insurance provides protection for employers if an employee suffers a work-related illness or injury.

5. Where can I find Professional Liability insurance that fits my needs?

Every small business is unique, but finding Professional Liability insurance to fit your needs doesn’t have to be difficult. BizInsure has simplified the process of finding insurance, so you can focus on running and growing your small business.

Our process is simple: complete a short application (usually 10 questions or less), compare quotes from top-tier insurers, and purchase a policy. The process is quick and easy—around 10 minutes from start to finish, and you receive your policy confirmation instantly!

BizInsure uses technology to bring small business owners like you competitive pricing, but we also provide a human touch. Our licensed agents can help you at any stage of your insurance journey—from buying a new policy to renewals.

If you’re ready to find Professional Liability insurance to suit your small business, visit our website to get started.