Professional Liability Insurance
in Arizona

What is Professional Liability insurance?

Increasing competition means clients are becoming harder to be satisfied with the products and services they receive. Regardless of how meticulous you are when completing your task, even small errors could lead to a dispute and consequently a claim. Customers can also be subject to liability if you give advice or perform tasks.

Also known as Errors and Omissions (E&O) insurance, this type of policy 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.

You could face a lawsuit if a product that you created doesn’t work or your advice causes financial losses to the customer. The lawsuit could claim that there was a mistake in the design or the product wasn’t up to par with. But if you are covered with Professional Liability insurance in Arizona the individual as well as your company will be shielded from claims by third parties that result from an error in professional practice or negligence.

What does Professional Liability insurance cover?

Even if the claim is proven to be untrue, costs for legal and court costs alone could amount to thousands of dollars. Small-scale business owners could feel the financial impact on their company. In addition, business closures and bankruptcy can result from claims for liability.

Professional Liability insurance typically covers:

• Legal Fees Legal fees – Hiring a an experienced legal professional can be costly. In reality, the majority of lawyers charge on an hourly basis.
• Court expenses – Including filing documentation in the courthouse, underwriting charges, administrative costs, and any other expenses.
• Settlements: If your client agrees in writing that they will settle the matter outside of the court system, you could be spared from a long and lengthy litigation process. But, you will still have the obligation to pay a fee, depending on what your attorney advises.
• Judgments You’ll need to pay the amount of the court if the case goes to trial.

Importantly, Professional Liability insurance in Arizona covers even if you’re not at fault. Baseless claims can be just as expensive to resolve as those that do have merit. You can protect your business and your professional reputation by purchasing an insurance policy for Professional Liability. This will cover you for the cost of settling these costs.

What isn’t covered?

Professional Liability insurance protects many types of businesses from common risk exposures they may face. It is important to understand that this insurance does not cover everything. Other forms of coverage may be required for certain events, such as:

• Damage to your commercial premises or property
• Damage to client property or property of third parties
• Workers’ work-related injury and illnesses
• Third party injuries that occur on your premises
• Business interruptions

BizInsure also offers coverage to help protect your company from the risks mentioned above and more. Arizona small business owners might also want to consider General Liability, Workers’ Compensation, and a Business Owner’s Policy to better protect them against a wide array of exposures that may affect their company.