Professional Liability Insurance
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According to the U.S. Small Business Administration (SBA) Office of Advocacy, there are 534,640 small businesses in Indiana in 2022. They comprise 99.4 percent of all businesses within the state. Small businesses have contributed more than 248,183 new jobs to Indiana’s economy. They are therefore a key driver of the state’s economic growth.
The top five industries in The Hoosier State for small-sized businesses are:
- Health Care and Social Assistance
- Accommodation and Food Services
- Professional, Scientific and Technical Services
As Indiana its booming economy continues to grow small-scale businesses will have to be protected by a security net in order for their businesses to be secure. Professional Liability insurance is one of the ways companies can protect the things they’re creating.
What is Professional Liability insurance?
Also known as Errors and Omissions (E&O) insurance, this type of 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.
What does Professional Liability insurance cover?
Even if a claim proves to be untrue, legal fees and court costs alone can add up to thousands of dollars. The financial burden can also have a negative impact on small business owners. In the worst-case scenario the liability claim could cause bankruptcy or even the closure of a business.
Based on what type of coverage you select and the amount you have agreed to in the insurance contract Professional Liability insurance can help you save up to
- Legal Fees – Hiring an experienced legal professional is expensive. In reality, the majority of lawyers charge an hourly rate.
- Court Expenses– This includes filing documentation with court, underwriting charges and administrative expenses.
- Settlements If your client agrees to settle out of court, you may be able to avoid a lengthy legal process, however you may still need to make a payment depending on your attorney’s advice.
- Judgments If your case is ruled in favor of the plaintiff at trial, you might need to pay the amount deemed by the court.
Importantly, Professional Liability insurance in Indiana covers even if you’re not the one to blame. Baseless claims could cost as much to resolve as meritorious ones. Protecting your business and reputation professionally by buying Professional Liability insurance will make sure that you do not end up paying for all of these costs.
What is not included?
Professional Liability insurance can protect companies from many common risks. However, it’s crucial to be aware that it does not guarantee your company’s protection for all eventualities. It is possible to look for other types of insurance for certain events, such as:
- Damage to your commercial premises or property
- Damage to the property of a client or another third party
- Work-related injuries or illnesses of employees
- Third-party injuries
- Business interruptions
BizInsure can provide additional coverage to safeguard your business from the risks mentioned above and other ones that small-sized businesses are exposed to. Indiana small-scale business owners might want to consider General Liability insurance, Workers’ Compensation insurance, or a Business Owner’s Policy to safeguard themselves from a wide range of possible exposures.
Who might need Professional Liability insurance in Indiana?
Insurance for Professional Liability protects companies and individuals who provide professional services. This can include designing solutions, providing assistance to clients, providing informed recommendations, or defending the interests of others.
Professions that require Professional Liability insurance in Indiana include but aren’t restricted to:
|Home Care Providers and Businesses||Yoga Instructors|
Professional Liability policy can benefit a wide range of professions and occupations. If your small business provides advice or services, represents others’ interests on behalf of others or engages in any other activities that leave you open to liability claims. You might want to think about putting an insurance policy in place to protect you and your business.
Is Professional Liability insurance required for Indiana companies?
Some professional associations require that members carry a the minimum amount of Professional Liability insurance in order to be licensed and work in their area. Learn more about Professional Liability insurance requirements on the website for the professional associations to which you are a member.
Clients might require Professional Liability coverage in order to work for them. The insurance is usually included in a business contract. Sometimes the proof of insurance might be required prior to signing the contract.
Even though you are not legally required to do so, it may be prudent to keep a Professional Liability insurance policy. If you don’t have one, you could have to pay for any claims against your business. This could also cause financial damage for your personal savings as well as your business.
How much does Professional Liability insurance cost in Illinois
Each Professional Liability policy is unique since they are designed to meet the needs of small businesses. The average cost of Professional Liability insurance for a small businesses in Indiana is $708 annually.
Insurance companies use a variety of factors to help determine the amount you will typically pay for Professional Liability insurance (commonly known as the “premium”). These are just a few of the factors that will affect the cost of Professional Liability insurance costs.
- The nature of your business and the risk you’re taking Like any other kind of insurance, greater risks will result in more expensive premiums.
- The size and turnover your company’s turnover and size. More complex projects, or greater volume of work, can increase your risk.
- The protected people’s qualifications or ability to perform their duties and any claims prior to them that may have been made against them
- Your industry
- Your claims history from the past
- The amount of insurance coverage needed
You may require specific coverage to meet the needs of specialists in your field. Professional Liability insurance could provide the protection you require.
Is Professional Liability the same as Errors & Omissions coverage?
Errors and Omissions insurance is the same as Professional Liability insurance. It can cover against claims arising from mistakes or misrepresentations. The insurance could pay for defense costs, as also settlements or damages arising from a lawsuit.
Recommended reading: Errors and Omissions vs. Professional Liability insurance
How to get Professional Liability for my Indiana business?
It’s easy to compare Professional Liability insurance among top rated U.S. insurance companies and obtain the most suitable insurance coverage at a reasonable price.