What is Professional Liability Insurance?
Professional Liability, otherwise known as E&O insurance, protects your business against claims of negligence, misrepresentation or mistake. Typically, the allegation is that your services, products or employees caused some form of financial damage to a third party. Regardless of fault, litigation is expensive, drains time and damages reputation. Professional Liability insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services.
Coverage is provided for:
- Attorney fees and other legal expenses
- Costs and expenses related to a settlement
- Costs and expenses related to a judgment
What is Professional Liability insurance?
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You can relax knowing you’ve secured the right insurance and the right price with Bizinsure. We allow you to compare multiple quotes so you can compare cost and coverage.
Who needs Professional Liability Insurance?
Professionals, and businesses that provide professional services such as giving advice, making educated recommendations, designing solutions or representing the needs of others are all have Professional Liability exposure. Professional Liability Insurance can safeguard your professional reputation, profitability, and business assets from the potentially astronomical expenses of litigation (whether justified or not). Click here for sample scenarios of Professional Liability Insurance in action.
How much does Professional Liability Insurance cost?
Premiums through BizInsure can be as low as $47/month, depending on your potential exposures and the amount of coverage you intend to purchase. Some of the factors that impact the cost, or premium, for a Professional Liability policy include:
- revenue size
- length of time in business
- claims history
- geographic location
- risk management procedures
- the amount of coverage desired
- the size of your deductible
- Click here to get quotes for your specific needs.
Professional Liability Insurance FAQs
How do I get Professional Liability insurance?
Our team of knowledgeable and friendly support staff are here to help you through every stage of the process and can assist with anything a traditional agent would help you with. There to guide you through the initial questions about your policy, up to renewal, we will be there as the needs as your business grow and change.
Get started today by either filling out the online application here or call one of our agents today at 1-877-900-9998.
How much Professional Liability insurance do I need?
We know you are busy trying to run your business, so we won’t bore you with the nitty-gritty. Like most purchases in life, the higher the quality and level of service of the product, the higher the price tag and the same goes for Professional Liability insurance policy premiums. A policy with increased coverage is going to cost more than a policy with a lower level of coverage.
Each business is different and exposed to varying risks creating its own unique insurance needs. There isn’t a one size fits all policy when it comes to Professional Liability insurance, but there are factors that can affect the pricing and level of coverage you may choose.
To get an understanding of what policy limit options are available, most insurers offer limits of $500,000, $1million and $2million with $1million being the most commonly selected limit.
There are a few factors that you need to consider when calculating the amount of insurance your business needs. This includes assessing the level of risk you anticipate, what deductibles you can afford and the type of business you run.
What’s the difference between General and Professional Liability insurance?
General Liability insurance provides protection for any physical injury that may be caused to people or damage to their property caused by your business operations. An example of a General Liability claim could be a delivery driver who trips and hurts themselves in your store or accidentally spilling a hot drink on a customer’s laptop causing bodily injury.
Professional Liability insurance provides coverage for claims of negligence related to your professional services or advice. A client may make a claim for the financial losses they have suffered, unlike a General Liability claim for bodily injury or damages.
Do I need General and Professional Liability insurance?
General Liability and Professional Liability insurance are two different kinds of policies designed to cover different types of risks. These are some examples of situations when you may require having both of these coverages in place.
- Provides protection against business liabilities– Both General and Professional Liability insurance provide peace of mind and protection if a claim against your business were to occur. They provide financial protection from the incidents caused, helping your business to carry on and keep operating as it would have before a claim.
- Contractual obligations– if you are faced with a specific contract, it is commonly required that businesses must hold a certain level of General or Professional Liability insurance before they can start working for them.