What is Professional Liability Insurance?
Recent figures from the U.S. Small Business Administration show that there are just over 934,600 small businesses in North Carolina. These make up 99.6% of all businesses in the state.
The growth of small businesses may be good for customers, providing them with more choice when it comes to choosing services and products. However, this also puts more pressure on business owners. An innocent mistake can easily grow into a large dispute, putting your business and professional reputation at risk.
This is where Professional Liability Insurance comes in. Also referred to as Errors and Omissions Insurance (E&O Insurance), Professional Liability insurance protects your business against claims of negligence, misrepresentation or mistake.
A client could bring a lawsuit against you or your business if an error or omission in your work results in a financial loss for the customer. Professional Liability insurance can safeguard your business from these types of claims, as well as claims asserting negligence on your part.
What does Professional Liability Insurance cover
Court costs and legal fees defending your business against professional liability claims can easily run into the thousands of dollars. Even if the claim is baseless, you can still end up spending large amounts of money proving otherwise. The financial burden of this can greatly impact a small business’ operations.
Depending on the type and amount of cover you choose, Professional Liability insurance in NC can help protect you from:
Legal Costs – Securing competent legal representation to represent you or your business.
Court Expenses – Administrative costs, including filing documents with the court.
Settlements – Any payments you and the client agree to outside of the court system.
Judgments – Any payments you are ordered to pay by the court as the result of a trial.
Who needs Professional Liability Insurance?
Professional Liability Insurance in NC is important for individuals or businesses who provide professional services to their clients. This includes designing expert solutions, giving educated advice and recommendations, and representing a client’s needs on their behalf.
There are many professions that can benefit from Professional Liability Insurance, including:
|Home Care Providers and Businesses||Yoga Instructors|
How much does Professional Liability Insurance cost in North Carolina?
As Professional Liability insurance can cover anyone from architects to yoga instructors, the cost of a policy varies greatly.
Several different factors are used to determine policy premiums. When receiving a quote for Professional Liability insurance, you may be asked questions such as:
What is your occupation? – Some occupations carry more risk than others, and will generally have higher premiums.
How large is your business? – More employees mean there’s more chances for mistakes to happen. This may also be true if you take on large projects or a high work volume.
Who will be covered? – You or your employees may need special qualifications or experience to properly carry out their duties.
Have you made similar insurance claims in the past? – Your previous claims history may impact how much you pay for a policy.
How much insurance cover do you need? – A higher amount of cover will generally mean higher premiums.
As a professional, the cover you get should be designed to meet the challenges of your field. Professional Liability insurance in NC provides protection for professionals like you, so you can serve your clients with more confidence.