Professional Liability Insurance
in Connecticut

What is Professional Liability insurance?

Clients are increasingly difficult to please due to the increasing competition. Small errors can turn into an issue, which can then turn into the case. Inadvertently, every time you provide advice to clients or accept work from them you expose yourself to risk.

Professional Liability, otherwise known as E&O insurance, protects your business against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors. Customers typically file these liability claims if they allege a financial loss resulting from your products, services, or employees.

If a product you have created fails to function or your advice has led to a financial loss to the client, you could be the victim of an action for liability. It is possible to be accused of making a mistake when working on your project, or not performing according to the specifications. You and your business are protected against third-party claims that result from professional negligence or errors when you are covered by Professional Liability insurance in Connecticut.

What does Professional Liability insurance cover?

Even if the claim is baseless, court costs and legal fees alone can run into thousands of dollars. Small business owners could be impacted by the cost of litigation. The liability claims could lead to bankruptcy or even the closure of a business in extreme cases.

Professional Liability policies typically cover unplanned expenses like:

• Legal Costs It’s expensive to find an experienced legal counsel. Most lawyers charge an hourly rate.
• Court Costs– This covers filing documents in court, underwriting fees and administrative costs.
• Settlements: If your client agrees in writing to settle outside of the court system, you might be able to avoid a lengthy and lengthy court process. However, you’ll still have an obligation to make a payment, depending on the advice of your lawyer.
• Judgments You’ll need to pay the amount of the court if the case goes to trial.

It is important to note that Professional Liability insurance in Connecticut will cover your losses, even when they’re not your fault. Baseless claims may be just as costly to settle as ones which are legitimate. Protecting your business and reputation professionally by buying Professional Liability insurance will ensure that you don’t end up paying these costs.

What isn’t covered?

Professional Liability insurance shields companies from typical risks. You should know that this insurance will not protect against every risk. It is possible to seek out other forms of insurance for certain specific events, like:

• Damage to your commercial premises or your property
• Damage to client property or property of third parties
• Injuries or accidents that are work-related for employees
• Your premises may be the target of third party injuries
• Business interruptions

BizInsure offers additional forms of coverage that will aid your business in protecting itself from the risk factors mentioned above and more. Connecticut small business owners might also want to consider General Liability, Workers’ Compensation as well as an Business Owner’s Insurance to better safeguard themselves from a broad array of exposures that may impact their business.