Professional Liability Insurance
in New York
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According to the U.S. Small Business Administration (SBA), Office of Advocacy 2022 in New York, there were 2.3 million small businesses. They make up 99.8% of all New York businesses. These small businesses are a major factor in the state’s economic growth. They have added nearly 659,369 new jobs to the state’s economy.
Top five industries for small businesses in New York include:
- Social Assistance and Health Care
- Accommodation and Food Services
- Construction
- Professional, Scientific and Technical Services
- Retail
As NY’s booming economy continues to grow, small businesses will start to consider having a safety net to ensure that their business to be protected. One method businesses may use to safeguard their investmentsis with Professional Liability insurance.
What is Professional Liability insurance?
Professional Liability insurance protects you from claims raised due to unintentional mistakes made in the professional capacity.
What does Professional Liability insurance cover?
Even if the claim isn’t valid, legal costs and court costs can easily reach the thousands. For small-sized business owners, the financial burden could also impact their operations. The reality is, liability claims could lead to bankruptcy, or even the closing of a company in extreme instances.
Depending on the type of coverage you choose, and the limit agreed in your insurance contract, Professional Liability insurance may protect your business from:
- Legal Fees – Hiring an experienced legal professional can be costly. In reality, the majority of lawyers charge an hourly rate.
- Court Expenses – Including filing documentation with the court, underwriting fees, administrative costs, and other related expenses.
- Settlements It is possible to avoid drawn out litigation. But, based on your attorney’s advice, you will still need to pay.
- Judgments If your case is decided in favor of the plaintiff at trial, you will be required to pay the amount deemed by the court.
Importantly, Professional Liability insurance in New York covers you even if you’re not the one to blame. Baseless claims may be just as costly to settle as claims that are legitimate. It is possible to protect your company and professional reputation with a Professional Liability, with the policy there to assist with paying for the costs of settling these costs.
What is not covered?
It is important to be aware, however, that Professional Liability 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 such as:
- The commercial property you own or property
- Property of a client, or another third party
- Work-related injuries to workers and illness
- Third party injuries on your premises
- Business interruptions
BizInsure offers other types of coverage that can help safeguard your business against these and other common risks faced by small businesses. To protect your business from a variety of risks that could affect them, Small-business owners in The Empire State may be interested in General Liability and Workers’ Compensation.
Who might need Professional Liability insurance in New York?
Professional Liability insurance is usually applicable to individuals and businesses that provide professional services.
New York professionals may need insurance for liability. The professions covered by this insurance include, but are not limited:
| Architects | Notary Publics |
| Consultants | Personal Trainers |
| Engineers | Pilates Instructors |
| Home Care Providers and Businesses | Yoga Instructors |
As you can see, there are a variety of jobs and professions that can benefit from Professional Liability insurance. You may consider a policy to protect your business and yourself if your small business offers assistance or products, serves other’ interests, or engages other activities that make you liable to claims.
Professional Liability insurance requirements in New York
Some professional associations require that their members have a minimum level of Professional Liability coverage to be certified and employed in their field. You can learn more about Professional Liability insurance requirements on the websites of the professional associations to which you belong.
Clients might also require your business to have a Professional Liability insurance policy in place in order to collaborate with them. It is usually written into a business contract. There is a chance that you require evidence of insurance prior to you sign the contract or begin work on your project.
Although it’s not required, it may be considered wise to have Professional Liability coverage to protect your business for the long run. If you don’t have one, you could have to pay for any claims against your business. It could be financially disastrous for your personal savings as well as your business.
How much does Professional Liability insurance Cost in New York?
Each policy is designed to cover a specific type of business. However, the average annual cost of Professional Liability insurance in New York for small-business is around $797.
Insurance companies use a variety of factors to help determine the amount you will regularly be charged to cover Professional Liability insurance (commonly called the “premium”). These are the elements that affect the price of the Professional Liability insurance premium:
- The nature of your business and the degree of risk you face – Insurance is expensive regardless of risk.
- The size of your business and the turnover – More work volume or bigger projects could increase the risk you face.
- The people covered are a person’s capability or suitability for their duties. Additionally, any previous claims against that person.
- Your industry
- The history of your previous claims
- The insurance coverage needed
Specialists in your field require specialized coverage to meet specific requirements and that’s where Professional Liability insurance can help.
Is Professional Liability included in E&O insurance?
Yes, Professional Liability insurance and Errors and Omissions insurance are the same. It will protect your company against claims of fraud or error, as well as negligence. The insurance may cover defense costs as well as damages or settlements resulting from a complaint.
Recommended reading: Professional Liability vs E&O insurance
How to obtain Professional Liability coverage for your New York 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 the lowest price.
