What is Professional Liability Insurance?
Small businesses in Missouri make up 99.4% of all businesses in the state. That’s just over 530,000 businesses, according to 2020 data from the U.S. Small Businesses Administration.
Many small businesses provide their clients with professional services or advice. But what happens if a mistake is made that costs the customer money? This is why small business owners should consider buying Professional Liability insurance in Missouri.
A Professional Liability insurance policy (also known as Errors and Omissions or E&O insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing.
Imagine you give a customer advice that results in them suffering a financial loss. They may decide to sue your company as a result. Professional Liability insurance can help you pay for the legal expense of defending your company.
What does Professional Liability Insurance cover
Whether a customer’s claim against you is valid or not, it can still cost thousands of dollars defending your reputation and business. Professional Liability Insurance in Missouri covers:
- Attorney fees
- Administrative legal fees
- Settlements for claims settled out of court
- Judgements for claims settled in court
Who needs Professional Liability Insurance?
Businesses and individuals may need Professional Liability insurance if they do one of the following:
- Offer specialized services
- Give customers advice that they rely on the make decisions
- Employ people who provide these types of services or advice on behalf of the company
If any of the above apply to you or your business, then Professional Liability insurance can help protect your finances and reputation against third party claims of errors, omissions or negligence.
Professions that need professional liability insurance include:
|Home Care Providers and Businesses||Yoga Instructors|
How much does Professional Liability Insurance cost in Missouri?
The yearly cost of Professional Liability insurance for small businesses in Missouri varies.
Professional Liability insurance policies are tailored to the individual or business they cover. The cost of a policy will depend on several factors, including:
- How risky the occupation is – Riskier jobs tend to pay more for Professional Liability insurance.
- The size of your business – More employees increase the risk that mistakes will be made.
- The amount of insurance you need – As with most insurance, you’ll likely pay more for more cover.