How Will Your Texas Business Benefit from Professional Liability Insurance?

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How Will Your Texas Business Benefit from Professional Liability Insurance?

Sep 16, 2019 · 5 minutes to read

 

professional liability insurance

According to the U.S. Small Business Administration (SBA) Office of Advocacy, there are 2.7 Million small businesses in Texas which equates to 99.8% of all businesses within the Lone Star State. One hundred percent of the Texas firms that provide professional advice or perform specialized services should consider adding Professional Liability Insurance to their portfolio. This is because Professional Liability Coverage, also known as Errors & Omissions (E&O) insurance, protects businesses against allegations of mistakes, negligence, or misrepresentation.

The most common accusation against a business is that an employee, service, or product somehow caused harm to a customer, typically financial harm. Your client may even take things a step further and initiate a liability lawsuit against your company as a way of mitigating their losses. If so, your Professional Liability Insurance will help absorb the unexpected costs related to defending your organization.

What does Professional Liability Insurance Cover?

Professional Liability Insurance provides a variety of benefits for a spectrum of liability circumstances.

Depending on the type of coverage limits selected, your Professional Liability insurance policy will provide financial resources for the following items:

  • Defense attorney fees
  • Expert witness and private investigator costs
  • Court administrative costs
  • Settlements (money paid to your client to drop the lawsuit)
  • Judgements (money the judge or jury orders you to pay to the client)
  • Documentation charges
  • Miscellaneous administrative costs

 

Relying on your Texas Professional Liability Insurance means you can avoid using business revenue to defend your company against a liability lawsuit. Your business operations can continue to run smoothly without interruption.

Below are a few basic scenarios for which your Professional Liability Insurance plan will help your Texas business.

  • If the client claims your business delivered incomplete or insufficient work
  • If the client claims you or your employees provided inaccurate or illegal information or advice
  • If your client claims your business breached the service contract in some manner

 

Of course, there are exclusions within every Texas Professional Liability Insurance policy including the following conditions that are not covered:

  • Illegal acts
  • Intentional malpractice
  • Property damage
  • Known claims and circumstances
  • Fraud and dishonesty
  • Bodily injuries
  • Deliberate wrongful acts
  • Employment discrimination
  • False advertising
  • Violation of laws or regulations

Professional Liability will safeguard your company whether the alleged wrongdoing is factual or completely false. This is important because even a baseless claim requires payment of court fees and legal costs that can add-up to thousands of dollars.

For small business owners like yourself, the peace of mind Professional Liability insurance coverage provides is priceless.

Who needs Professional Liability Insurance?

Many different Texas professionals can benefit from the support of a Professional Liability policy to guard their financial resources and protect their reputations from the hazards of a liability claim.

In fact, Texas business owners in a wide variety of industries secure Professional Liability coverage because they offer unique advice and services that make them vulnerable to someday being the defendant in a liability lawsuit. Notary publics, home care providers, consultants, engineers, and dozens of other Texas business owners keep Professional Liability coverage in their toolkit just in case they are ever involved in a liability case.

Professional Liability Insurance helps C-suite executives safeguard their business assets, business reputations, and long-term profitability from the expense of potential litigation.

How Much Does Professional Liability Insurance Cost?

Professional Liability Insurance premiums are unique to each company and are calculated based on several different factors. On average, Texas businesses pay an annual premium of $894 for Professional Liability coverage.

Typically, the riskier the profession then the higher the Professional Liability Insurance pricing will be. However, there are other important aspects of an organization that must be considered when calculating the final premium amount.

A few of the key components taken into consideration when establishing a Professional Liability policy are:

  • Annual payroll, staff size, turnover rate, employee licensing and experience
  • Type of occupation: some professions are simply riskier than others and the insurance costs reflect that difference.
  • Credit and legal history
  • Previous claims history
  • Annual revenue: Complicated, big-budget projects will increase your risk of being sued and, therefore, the insurance carrier will appraise this when determining your pricing.
  • The liability limits selected. Bottom line: the higher the limit purchased ($2M versus $1M) then the more you’ll pay in premium.

What Other Ways Can Professional Liability Insurance Benefit My Business?

Professional Liability Insurance will also offer your Texas business less obvious benefits such as:

  1. Professional Liability May Be Required – For example, many industries such as fitness or health care require professionals to buy a Professional Liability policy before working with the public. Often state, federal, and/or professional regulations enforce this type of requirement.
  2. Certificates of Insurance (COI) – A COI for Professional Liability Insurance is often requested by business partners, loan officers, landlords, and other business contacts. Not having Professional Liability insurance already in place means you could miss out on a great opportunity.
  3. Possible Tax Benefits – Verify with your company’s accountant or CFO to confirm if there are any possible tax benefits to having a Professional Liability Insurance policy. For example, you may find that all or even a portion of the E&O premium is a deductible business expense.

Texas Professional Liability Insurance Makes Sense

As a specialist in your field, you will require unique coverage that is designed to confront specific challenges and secure your company’s long-term success. Professional Liability Insurance provides multiple benefits to your business and can do so for a minimal price.

Up until this point, you may have been fortunate in not encountering a dissatisfied client willing to pursue legal action. However, as your customer base expands and you take on even bigger projects, you may find yourself and your company in a compromised situation for which Texas Professional Liability coverage would be beneficial.

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Friendly agents. Timely replies. Fair pricing. This is a good fit for my business! Thank you, Noah, for all your help.
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MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
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Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
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Eugene was Awesome!!!!
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Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
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Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
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I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
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18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
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19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic F.
21:00 07 Apr 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
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19:04 16 Mar 21
Excellent service and prices.
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23:13 09 Mar 21
Mr. Daniel Scott was very responsive to my professional needs.
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17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined P.
23:32 17 Feb 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe W.
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
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Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda H.
23:26 12 Nov 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran S.
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
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19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
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01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
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02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy S.
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
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If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
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16:45 24 Aug 20
Great and fast service!!!! The representative was very professional!!!!
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I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
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Great service insurance prices are great for professionals looking to get insurance for businesses....
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22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul R.
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene S.
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre H.
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn T.
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
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01:30 05 May 20
Amazing
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
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Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
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18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
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Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
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Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
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