What is Professional Liability Insurance?
Ohio is home to over 965,000 small businesses, according to 2020 data from the U.S. Small Business Administration (SBA). These businesses make up 99.6% of all businesses in the state, and employ around 28% of people in Columbus, OH.
Building a small business from the ground up can be hard, and managing it is also a struggle for many business owners. There are many factors that challenge operations, from competition and narrow profit margins, to logistics and seasonal sales differences. With so much to think about, the last thing you should worry about is a mistake.
Professional Liability insurance can help. Also known as Errors and Omissions (E&O) insurance, this type of policy protects your business against claims of negligence, misrepresentation or mistake.
If you or an employee make a mistake, and a client alleges that this resulted in a financial loss for them, they can bring a lawsuit against you or your business. Professional Liability insurance can help protect you from these types of claims, even ones that are invalid.
What does Professional Liability Insurance cover
Professional Liability insurance covers legal costs and expenses. Even if a claim made against your company is baseless, it could still cost thousands of dollars to clear your name. This can greatly impact a small business’ operations and create financial stress for you.
That’s why this type of insurance is so important for small business owners in Columbus. Professional Liability insurance can cover:
- Legal fees, such as hiring an attorney.
- Legal admin costs, like filing documents in court.
- Settlements, for claims settled out of court.
- Judgements, for repayments ordered by a judge.
How much your Professional Liability policy will cover depends on the amount of insurance you decide to take.
Who needs Professional Liability Insurance?
Professional Liability insurance should be taken if you or your business:
- Provide clients a professional service.
- Give advice based on your field of expertise.
- Make professional recommendations to clients.
- Represent your clients needs on their behalf.
Occupations where you may need Professional Liability Insurance in Columbus include:
|Home Care Providers and Businesses||Yoga Instructors|
How much does Professional Liability Insurance cost in Columbus, OH
Professional Liability insurance in Columbus will vary, as each policy is based on the specific needs of the person or small business it will cover.
The cost of your Professional Liability insurance will be determined by:
- Your occupation – Riskier jobs and industries generally have higher premiums to balance those risks.
- Your business’ size – More employees bring more opportunity for mistakes to happen.
- Who will be covered – How qualified you and your employees?
- Your claims history – Have you made insurance claims before, and what was the nature of these claims?
- How much insurance cover you need – More cover generally means higher premiums.
Professional Liability insurance can help protect professionals in many industries, so you can manage your small business with less stress and more confidence.