What is Professional Liability Insurance?
Small businesses make up 99.8% of all businesses in Texas. That’s some 2.8 million businesses across the state, according to data from the U.S. Small Business Administration. In Houston TX alone, about 97% of businesses have fewer than 100 employees.
Like many small businesses, you may give your clients and customers professional services, advice and recommendations, or represent their interests on their behalf. No matter how careful you are, it is always possible that a mistake could be made, or important information could be left out. It’s also possible for a client to misunderstand and then misapply your advice.
This is why small business owners should consider getting Professional Liability insurance in Houston. Also referred to as Errors and Omissions (E&O) Insurance, Professional Liability insurance protects your business against claims of negligence, misrepresentation or mistake. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
What does Professional Liability Insurance cover
Professional Liability insurance in Houston TX helps protect your business against both actual and alleged claims of errors and omissions that may have occurred while providing professional services.
Defending your business against a claim—valid or not—is often very expensive. The costs can impact business operations and could even affect your personal finances. Professional Liability insurance acts as a shield to protect you and your business, so you can continue to serve your clients with confidence.
Professional Liability insurance may cover:
- Attorney Fees – The cost of hiring an attorney to defend you in court.
- Administrative Legal Expenses – Anything related to a court case, such as filing paperwork.
- Settlements or Judgements – Any money you pay to a client, either settled out of court or ordered by a judge.
A Professional Liability insurance policy can help cover these costs, so you don’t have to dip into your business accounts or borrow from your personal savings.
Who needs Professional Liability Insurance?
Any individual or business that provides their clients or customers with expert advice and professional recommendations, or designs solutions, should have Professional Liability insurance in Houston TX.
Professional Liability insurance helps protect your reputation and your financial assets. Even an invalid claim made against you or your business can cost thousands of dollars to clear up. A Professional Liability insurance policy covers both legitimate and alleged claims, potentially shielding your business from costly shutdowns or financial stress.
Professions that may need Professional Liability insurance include:
|Home Care Providers and Businesses||Yoga Instructors|
How much does Professional Liability Insurance cost in Houston, TX
The cost of Professional Liability insurance for your business will depend on several factors. These may include:
- Your industry or occupation
- The size of your business
- Who will be covered by the policy
- How much insurance cover you need
- Your claims history
The terms of your Professional Liability insurance policy will be tailored to fit your specific needs and the unique challenges of your industry.