Professional Liability Insurance
in Michigan

What is Professional Liability insurance and how does it work?

The increasing competition means that customers are becoming harder to please when it comes to the products and services they purchase.

No matter how careful you are when completing your task, even small errors could lead to an issue and eventually a claim. Every time you give clients advice or accept work with them, you inadvertently expose yourself to a liability claim.

This is where Professional Liability insurance steps into the picture.

Professional Liability insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services.

That way, you can have peace of mind when giving advice.

What does Professional Liability insurance cover in Michigan?

Even if the claim is not legitimate, legal fees and court costs can easily run into the thousands. Small-scale business owners may be affected by the financial burden. In the worst-case scenario, liability claims can cause bankruptcy or even business closure.

The type of coverage that you select, and the amount stipulated by your insurance contract will determine how much Professional Liability insurance will cost you.

• Legal Costs – Securing competent legal representation doesn’t come inexpensive, and most lawyers cost an hourly fee.
• Court Costs– This includes filing documentation in court, underwriting fees and administrative costs.
• Settlements – If your client is willing not to appear in court, it may help you avoid a lengthy and expensive legal process. But, you’ll be required to pay a fee depending on the advice of your lawyer.
• Judgments – However should your case go to trial and the verdict is to be in the favor of the plaintiff you will have to pay the amount as determined by the court.

Importantly, Professional Liability insurance in Michigan will cover your losses even when they are not at responsibility.

The most common claims that are not justified can be as costly to resolve than those with merit. The Professional Liability policy will aid in protecting your business’s image and cover the costs mentioned above to ensure that you don’t end up completely out of pocket.

What isn’t included?

Professional Liability insurance protects businesses from common risk exposures. It is important to be aware that this insurance will not cover all risks. You may need to seek out other forms of insurance for certain events, such as:

• Property and commercial premises that may be damaged
• Damage to client property or property belonging to third party
• Employee work-related injury or illness
• 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. The Great Lakes State small business owners may want to consider General Liability insurance, Workers’ Compensation insurance, or a Business Owner’s Policy to protect themselves against a broad range of possible exposures.