Professional Liability Insurance
in Colorado

What is Professional Liability insurance?

Customers are becoming more difficult to please because of the increased competition. Regardless of how meticulous you are when completing your task, even small errors can snowball into a dispute and consequently a claim. You may also be exposed to liability if you give advice or design custom solutions for clients.

Professional Liability insurance protects you from claims raised due to unintentional mistakes made in the professional capacity. Clients typically file claims when they assert financial loss resulting from your products, services, or employees.

You may be sued if the product you’ve created doesn’t perform as expected or when your advice causes financial loss for the client. The lawsuit could assert that you made a mistake when you worked or that your work wasn’t up to par. But if you are protected by Professional Liability insurance in Colorado, you as well as your company will be protected from third-party claims that result from an error in professional practice or inattention.

What does Professional Liability insurance cover?

Even if the claim isn’t valid, legal costs and court costs can easily run into the thousands. This financial burden could have a negative impact on entrepreneurs with small businesses. The liability claims can lead to business closure or even bankruptcy in the most extreme instances.

Professional Liability coverage typically pays for:

• Legal Costs Legal representation doesn’t come cheap, and lawyers typically charge an hourly rate.
• Court costs includes filing documents with the court and underwriting charges.
• Settlements – If your client agrees to settle outside of court, you could be saved from a long-drawn-out litigation process, but you’ll still need to pay a fee based on the advice of your attorney.
• Judgments You’ll need to pay the court’s amount if the case goes to trial.

It is important to note that Professional Liability insurance in Colorado will cover your losses even if they’re not at fault. Unsubstantiated claims are just as expensive to resolve as those that do have merit. Protecting your business and reputation professionally by purchasing a Professional Liability policy can ensure that you don’t end up paying for the entire cost.

What isn’t included?

Professional Liability insurance protects businesses from the typical risk risks they could encounter. It is important to understand that this insurance doesn’t cover everything. If you have events that aren’t covered by your insurance, you might need to search for alternative coverage options such as:

• The commercial property you own or your property
• Property of clients damaged or property of third party
• Injury or illness related to work for employees
• Your premises may be the victim of third party injuries
• Business interruptions

BizInsure offers other types of insurance that could help shield your business against the risks that small-sized businesses face. To better protect their business from a range of risks that could affect them, Colorado small-business owners may also consider General Liability and Workers’ Compensation