Professional Liability Insurance
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According to the U.S. Small Business Administration (SBA), Office of Advocacy in Georgia, there were 1.2 million small business as of 2022. They make up 99.6 percent of Georgia business. These small businesses contributed nearly 452,061 new jobs to the state’s economy. They are therefore a key driver of Georgia’s economic growth.
The five top industries that employ Georgia small-sized businesses include:
- Social Assistance and Health Care
- Accommodation and Food Services
- Professional, Scientific and Technical Services
Small businesses are discovering that they require a safety net to protect their growing business. Businesses can protect what they are creating by securing Professional Liability Insurance in the Peach State.
What is Professional Liability insurance?
Customers are becoming more difficult to please due to the increased competition. Regardless of how meticulous you are when completing your work, small mistakes could lead to an issue and eventually a claim. Inadvertently, every time you offer advice to customers or take work from them, you are exposing yourself to risk.
Also known as Errors and Omissions (E&O) insurance, a Professional Liability 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.
If a product that you designed fails to work or your advice has led to an economic loss to the client, you may be the victim of an action for liability. It is possible to be accused of making a mistake when working on your project or failing to perform as expected. But Professional Liability insurance in Georgia can provide protection for your business from third-party lawsuits caused by professional negligence or errors.
What does Professional Liability insurance cover?
Even if the claim is not legitimate, legal fees and court costs can easily reach the thousands. This financial burden could affect entrepreneurs with small businesses. In addition, the possibility of business closures or bankruptcy could result from liability claims.
Based on the type of coverage you select and the amount you agree to in your insurance contract, Professional Liability insurance could help you save up to
- Legal costs – Getting an experienced legal professional isn’t an inexpensive job. Lawyers typically charge an hourly fee.
- Costs for Court This covers filing documents at the courthouse, underwriting fees administration costs, as well as other related expenses.
- Settlements If your client accepts in writing to settle the matter outside of the court system, you could be able to avoid a lengthy and drawn-out court procedure. However, you’ll still have the obligation to make a payment according to what your attorney advises.
- Judgments You’ll be required to pay the court’s amount if the case goes to trial.
Importantly, Professional Liability insurance in Georgia will cover you even if not the one to blame. Baseless claims can be just as expensive to resolve as those that do have merit. The Professional Liability insurance will help you protect your business image and cover the costs mentioned above so that you aren’t totally out of pocket.
What is not included in the policy?
Professional Liability insurance protects businesses from common risk exposures. It is important to understand that this insurance doesn’t cover everything. If you have events that aren’t included in your insurance, you might need to search for alternative coverage options like:
- The commercial property you own or your property
- Damage to client property or property of third party
- Accidents or illnesses that are work-related for employees
- You may sustain third-party injuries in your home
- Business interruptions
BizInsure offers other types of coverage that can help shield your business against the risks that small-sized businesses face. Georgia small-scale business owners may be interested in General Liability, Workers’ Compensation as well as a Business Owner’s Policy to better protect them against a wide range of risks that could impact their business.
Who might need Professional Liability insurance in Georgia?
Professional Liability insurance applies to businesses and individuals who offer professional services, such as designing solutions, giving clients guidance, providing educated suggestions or those who represent the interests of others.
Georgia professionals may need Professional Liability insurance. The professions covered by this insurance include, but are not limited:
|Home Care Providers and Businesses||Yoga Instructors|
A Georgia Professional Liability policy could be beneficial to a variety of occupations and professions. It is possible to need a policy to shield your small business from claims for liability when you offer services, advice or represent the interests of other people.
Is Professional Liability coverage required in Georgia?
Professional associations sometimes require their members to hold the minimum amount of Professional Liability coverage to become licensed or be employed in the area. Learn more about Professional Liability insurance requirements by visiting the websites of any professional associations you belong.
Clients may also require you to have Professional Liability insurance in order to work with them. It is typically written into a contract or agreement. Sometimes, proof of insurance may be required prior to signing the contract.
Even though it is not required, it could be beneficial to carry Professional Liability insurance. If you don’t have one, you may be required to pay for claims made against your company. This could also be financially disastrous for your personal savings as well as your business.
How much does Professional Liability insurance cost?
Georgia’s Professional Liability insurance rates can differ significantly. However, the average cost for Professional Liability in Georgia is approximately $612 per year. Every policy is different because they are designed to meet the specific requirements of small-sized companies they protect.
The amount you have to pay monthly to purchase Professional Liability insurance (commonly referred to as the “premium”) is determined by insurance companies using various factors. These are the elements that affect the price of your Professional Liability insurance premium:
- The nature and the risk of your company – Just like any other type of insurance the more risk the company is and the higher cost it will cost to cover the risks.
- The size and turnover of your business – Larger projects or a higher volume of work increases your exposure to risk.
- The people covered are a person’s ability or ability to perform their job. Also, any past lawsuits against the person.
- Your business
- Your previous claims history
- The required insurance coverage
You’ll require a specific insurance to meet the requirements of experts in your area of expertise. Professional Liability insurance can provide the critical security you require.
Does Professional Liability coverage come with General Liability?
General Liability covers bodily injury and property loss suffered by customers, vendors and other parties. Professional Liability covers mistakes or deadlines that are missed, as well as other events tied to the services you provide.
Recommended reading: General Liability vs. Professional Liability insurance
Learn more about errors and omissions insurance in the states where you work.
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