Professional Liability Insurance
in Arkansas

What is Professional Liability insurance?

Customers are becoming more difficult to please because of the increased competition. Regardless of how meticulous you are in the execution of your task, small errors could lead to a dispute and consequently an action. You’re risking liability when you provide advice or accept work from clients.

A Professional Liability insurance policy (also known as Errors and Omissions or E&O insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing. Customers who assert financial losses due to your services, products or employees are more likely to file Professional Liability claims.

A lawsuit for liability may be filed against you in the event that the product that you created fails to perform or if you provided instructions that resulted in financial loss to the client. These lawsuits could claim that you made an error in your work or that your work wasn’t up to par. If you are covered by Arkansas Professional Liability insurance, you can protect your company and yourself from third-party claims that may be filed against you because of professional negligence or error.

What does Professional Liability insurance cover?

Even if a case is not substantiated, legal fees and court costs could amount to thousands of Dollars. The financial burden can also have a negative impact on small business owners. The liability claims could lead to bankruptcy or even the closure of a company in extreme instances.

Professional Liability insurance could be a great alternative to help pay unplanned expenses, such as:

• Legal Fees – Hiring an experienced legal professional is expensive. In fact, most lawyers charge on an hourly rate.
• Court Costs– This includes filing documentation with court, underwriting charges and administrative costs.
• Settlements: If your client agrees in writing to settle outside of court, you might be able to avoid a lengthy and lengthy litigation process. But, you will be required to pay a fee according to what your attorney advises.
• Judgments If your case is decided by the plaintiff at trial, you will be required to pay the amount deemed by the judge.

Importantly, Professional Liability insurance in Arkansas will cover you even if not the one to blame. Baseless claims are often just as costly to resolve as claims that have merit. A Professional Liability insurance policy can protect your reputation and business by paying for the above, so you are not completely out of pocket for these costs.

What isn’t covered?

Professional Liability insurance can protect businesses from common risk exposures. But, Professional Liability insurance doesn’t cover every business. It might be necessary to search for coverage that covers events in different ways, like:

• Commercial and residential premises could be damaged
• Client or third-party property is at risk
• Workers’ work-related injury and illness
• Third party injuries on your premises
• Business interruptions

BizInsure provides additional types of insurance that can help your business protect against the risk factors mentioned above and more. Arkansas small business owners might be interested in General Liability, Workers’ Compensation, and a Business Owner’s Policy to more fully safeguard themselves from a broad range of risks that could affect their company.