Professional Liability Insurance
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According to the U.S. Small Business Administration (SBA) Office of Advocacy the number of small businesses in Nebraska is 18,,684 small companies as of 2022, and they make up 99.1 percent of all businesses in the state. These small businesses contributed nearly 78,194 new jobs to the state’s economy. They are therefore an important driver for Nenbraskas’s economic growth.
Nebraska’s top five industries for small businesses include:
- Health care and Social Assistance
- Accommodation and Food Services
- Professional, Scientific and Technical Services
As Nebraska grows, more small businesses are starting to take advantage of the booming economy. Many may need to ensure that their company is protected and one method businesses can use to protect their investment is by having Professional Liability insurance.
What is Professional Liability insurance?
Professional Liability, otherwise known as E&O insurance, protects your business against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors.
What does Professional Liability insurance cover in Mississippi?
Even if the claim isn’t legitimate, legal fees and court costs can easily reach the thousands. This financial burden could affect small business owners with the reality that some liability claims can cause bankruptcy, or even the closing of a company in extreme instances.
Based on what type of coverage you select and the amount you have agreed to in the insurance contract Professional Liability insurance can save you up to:
- Legal costs Finding a competent legal representation is not an easy task. Lawyers typically cost an hourly rate.
- Court Costs This includes filing documentation with court, underwriting charges and administrative expenses.
- Settlements: If your client accepts in writing that they will settle outside of the court system, you could be able to avoid a lengthy and drawn-out litigation process. But, you will still have the obligation to make a payment, depending on what your attorney advises.
- Judgments You’ll be required to pay the amount of the court in the event of a trial.
It is important to note that Professional Liability insurance in Nebraska covers you even if you are not at fault. The most common claims that are not justified are as costly to resolve than those with merit. Making sure that your reputation and business are protected professionally by purchasing a Professional Liability policy will help that you don’t end up paying for the entire cost.
What is not included in the policy?
Professional Liability insurance may protect businesses from common risk exposures, but it is important to be aware that the policy does not protect against all risks. For events that are not covered by your Professional Liability insurance policy, you may need to look for alternative alternatives to cover like:
- Property and commercial premises may be damaged
- Property belonging to the client or a third party is at risk
- Work-related injuries to workers and illness
- You may sustain third-party injuries in your home
- Business interruptions
BizInsure will provide additional insurance to protect your business against the risks mentioned above and other ones that small businesses face. To better safeguard your business from a variety of risks that could impact them, Nebraska small-business owners may also consider General Liability and Workers’ Compensation.
Who may need Professional Liability insurance?
Insurance for Professional Liability protects companies and individuals who provide professional services. This includes designing solutions, providing advice to clients, making educated recommendations, or representing the interests of others.
Below is a example of some of the types of professions which may consider Professional Liability insurance:
|Home Care Providers and Businesses||Yoga Instructors|
Professional Liability insurance is designed as a policy to protect your business and yourself if you provide advice or services, represents others’ interests, or engages in other activities that make you liable to claims.
Professional Liability insurance requirements for Nebraska businesses
Professional associations may require members to have the minimum amount of Professional Liability coverage to be licensed and work in the area. You can find out more information about Professional Liability insurance requirements on the websites of the professional associations to which you belong.
Clients may also require your business to have Professional Liability insurance to work with them. This will be typically written into a contract or agreement. Prior to signing the contract and beginning work on the project, you might need to submit evidence of insurance.
Even though you are not required, having Professional Liability insurance in place may be something to consider when looking at ways to protect your business for the long run. In the event of a claim, you may be required to cover the liability costs out of your personal funds and this could prove expensive for both your personal and business savings.
What is the cost of Professional Liability insurance?
The cost of Professional Liability insurance in Nebraska can vary widely. Every Professional Liability policy is unique because they are designed to meet the needs of small-sized businesses. However, the average annual cost for Professional Liability insurance for small companies in The Cornhusker State is approximately $676.
Many elements are utilized by insurance companies to decide how much you will be charged regularly for Professional Liability insurance (commonly called” the “premium”). The main factors that determine the cost of your Professional Liability insurance premium are:
- The nature of your business, and the risk you’re taking As with any kind of insurance, greater risks will result in higher costs.
- The volume and size of your business – Larger projects or a higher volume of work increases your exposure to risk.
- The individuals who are covered – The person’s abilities and qualifications to carry out their duties. If any claims were brought against the individual in the past.
- Your industry
- Your past claims history
- The insurance coverage needed
Experts in your field require special coverage designed to address specific needs, and this is where Professional Liability insurance can help protect your business.
Is Professional Liability the same as Errors and Omissions coverage?
Professional Liability insurance and Errors and Omissions insurance both provide the same coverage. The insurance will protect your business from claims of negligence, misrepresentation and mistake. It could provide insurance for the cost of defense as well as any resulting settlements or damages that result from the complaint.
How to arrange Professional Liability insurance for your Nebraska business?
BizInsure helps you compare Professional Liability policies from most A-rated insurance carriers in the U.S. We can assist you in obtaining comprehensive protection at a competitive price.
Learn more about Professional Liability insurance in the states where you work.
This information is provided as a guide only and may not reflect pricing for your particular business, as individual underwriting criteria will apply.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.