Professional Liability Insurance
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According to the U.S. Small Business Administration Office of Advocacy, Mississippi has 270,534 small business owners as of 2022. This represents 99.3 percent of Mississippi businesses. Small businesses have contributed just under 92,632 new jobs to the state’s economy. This makes them an important factor in economic growth.
The following are the five top industries Mississippi small-sized businesses ought to be looking into:
- Social Assistance and health care
- Accommodation and Food Services
- Professional, Scientific and Technical Services
As increasing numbers of small-scale companies take advantage of the boom in the Mississippi economy, many may discover that they require a safety net in place to safeguard their expanding business. Businesses can safeguard their work with Professional Liability insurance.
What is Professional Liability insurance?
Clients are increasingly difficult to please due to the increased competition. Even if you’re careful when it comes to your work, small errors can lead to an issue or claim. Every time you give clients advice or accept work with them, you are liable for the advice you give.
This is where Professional Liability insurance could help.
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 in Mississippi?
Even if the claim is not valid, the legal costs and court fees can still add up to thousands of dollars. Small business owners could be affected by the cost of litigation. Liability claims could cause the business to close or even go bankrupt in the worst instances.
Depending on the kind of coverage you choose and the amount you agree to in your insurance contract, Professional Liability insurance could save you from:
- Legal Fees – Hiring a competent legal representative is expensive. In fact, most lawyers charge an hourly rate.
- Court Costs– This covers filing documents in court, underwriting fees and administrative expenses.
- Settlements – If your client accepts in writing that they will settle the matter outside of court, you might be spared from a long and drawn-out court procedure. But you will likely still have the obligation to pay a fee, depending on what your attorney advises.
- Judgments – If your case is argued to trial and the plaintiff prevails the case, you’ll be required to pay the amount requested by the court.
Importantly, Professional Liability insurance in Mississippi covers even if you’re not the one to blame. Baseless claims are often just as expensive to settle than those with merit. A Professional Liability policy will help you defend your business and professional reputation by paying for the above, so you are not completely out of pocket for these expenses.
What is not included?
Professional Liability insurance protects many businesses against common risks. You may want to be aware, however, that this insurance will not protect against all risks.
If you have events that aren’t covered by your insurance, you may need to look for alternative coverage options. Risks that are not covered by Professional Liability insurance include:
- Property damage to third parties
- Third-party bodily injury
- Work-related illness or injury for employees
- Business interruptions
BizInsure has a variety of additional insurance options to safeguard your business from the risks mentioned above. Small-scale business owners may be interested in General Liability insurance, Workers’ Compensation insurance and a Business Owner’s Policy for greater protection against various risks that could affect their business.
Who may need Professional Liability insurance in Mississippi?
Professional Liability insurance applies to businesses and individuals who provide professional services, including creating solutions, providing clients with guidance, providing educated suggestions or those who serve the needs of other people.
There are many occupations that may benefit from getting a Professional Liability policy. This includes:
|Home Care Providers and Businesses||Yoga Instructors|
Professional Liability policy could benefit a wide range of professions and occupations. If your small business provides advice or services, represent the interests of others on their behalf, or engages in other activities that could leave you open to claims for liability, you might want to think about putting a policy in place to protect you and your business.
Professional Liability insurance requirements for Mississippi businesses
Professional associations may require members to have minimum levels of Professional Liability insurance to be licensed and work in the area. Find out more about Professional Liability insurance requirements by visiting the BizInsure website.
You may need to carry Professional Liability insurance if you are working with clients. This will be usually written into a business agreement. Sometimes proof of insurance might be required before you sign the contract.
It is still a good idea to have a Professional Liability policy even when not required. You could lose your business or personal savings if you do not have a Professional Liability policy.
How much does Professional Liability insurance cost in Mississippi?
The price of Professional Liability insurance in The Magnolia State is subject to a wide range of variations. Every Professional Liability policy is designed to cover a specific kind of business.
The average annual price of Professional Liability insurance for small businesses in Mississippi is about $736.
The average monthly amount to purchase Professional Liability insurance (commonly called the “premium”) is calculated by insurance companies using a number of variables. The following factors can affect the price of your Professional Liability insurance premium:
- The nature of your business and degree of risk involved – Similar to any other kind of insurance, the higher the risk, the greater the cost to meet the risk.
- The amount and the turnover of your company’s turnover and size. Larger projects, or higher volumes of work, increase the risk.
- The individuals covered – A person’s capability or ability to perform their job. Also, any past claims against that individual.
- The field in which you work
- Previous claims history
- The insurance coverage needed
Specialized coverage may be required for professionals. Professional Liability insurance can offer the crucial protection you might need.
How to get Professional Liability insurance for Mississippi business?
It is easy to compare Professional Liability policies and locate the most reliable insurance company in the U.S. BizInsure can assist you in obtaining the most suitable protection for your needs.
Learn more about Professional Liability insurance in the states where you work.
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