Professional Liability Insurance
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Wyoming has more than 72,000 small businesses, according the most recent statistics released by the U.S. Small Business Administration Office of Advocacy. Wyoming’s economy is fueled by small businesses that comprise 98.9 percent of companies. The state also added more than 21,999 new jobs during 2022.
Top five industries small businesses in Wyoming include:
- Accommodation and Food Services
- Social Assistance and Health Care
- Professional, Scientific, and Technical Services
No matter what industry which you operate in, you will likely want to safeguard your company from the most common risks. Professional Liability insurance is one method to achieve this. This policy will shield your business from lawsuits that could cause a major loss to your company.
What is Professional Liability insurance?
Professional Liability insurance in Wyoming is a great alternative for small businesses who offer professional services to customers or advise them.
Also known as Errors and Omissions (E&O) insurance, this type of policy protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
Imagine, for example that you offered professional services to your customer that wasn’t appropriate for the client. They suffered financial and emotional harms as a result, and as a result they decide to file a lawsuit against your company. A Professional Liability policy will help cover the expenses of protecting your company.
What does Professional Liability insurance cover?
Professional Liability insurance in The Equality State can protect you from:
- Errors or mistakes
- Deadlines are not met
- Services not delivered
- Breach of contract
If a claim or lawsuit is filed against your business which is related to these circumstances, the Professional Liability insurance policy will cover your legal costs incurred when defending your company. The policy will cover lawyers’ fees, underwriting and documentation fees, administrative costs, settlements and judgements.
Professional Liability insurance in Wyoming helps protect you against actual or alleged losses resulting from your work. Even if a lawsuit is not based on merit, it could still be costly. A Professional Liability policy will protect your company’s finances by paying the legal costs that are relevant. Without the policy, you would be responsible for these expenses, which could potentially cause bankruptcy or closure. In a worst-case scenario, you might also need to draw from your savings account to pay the legal costs.
What is not covered?
Small businesses can benefit from Professional Liability insurance. However, it will not guarantee you protection against every risk your business may face. In order to fully safeguard your business you may have to purchase other types of insurance.
The above and other types of coverage are available to small-business proprietors in Wyoming.
- General Liability This policy protects your company from lawsuits that could result in injury to the bodily or property.
- Business Owner’s Policy A Business Owner’s Policy (BOP) is an insurance product that blends General Liability as well as Business Personal Property insurance to shield small-scale businesses from costly service interruptions.
- Workers’ Compensation – Workers’ Compensation insurance (also referred to Workers’ Comp or Workman’s Comp) covers you from medical expenses and lawsuits that may result from accidents and illnesses at work. They can also be liable for lost wages as a result of injuries to the workplace that employees suffer.
Who may need Professional Liability insurance?
In Wyoming, Professional Liability insurance is beneficial to many kinds of businesses and professionals. This includes ventures that are involved in providing guidance based on specific expertise or knowledge providing informed advice, designing solutions, or representing the needs of other people on their behalf.
Professional Liability insurance helps protect your company’s assets, profits and reputation from astronomical legal costs (whether they are justifiable or not).
Professions that could require Professional Liability insurance are:
|Home Care Providers and Businesses||Yoga Instructors|
It is evident that the types of occupations who usually purchase Professional Liability insurance vary. If you’re not sure if this kind of insurance is right for you and your business you might want to think about the requirements of your work.
Individuals or businesses that engage in the following activities should consider the following coverages for Professional Liability:
- Regularly provide advice or suggestions to your customers.
- Custom-designed products or solutions for clients and customers
- Represent the interests of a customer on their behalf
- Other professional services available to clients and customers
- Employers who can do all of the above are welcomed.
Professional Liability insurance requirements for Wyoming businesses
Professional associations often require their members to have Professional Liability insurance. The requirement to maintain minimum levels of insurance may be a necessary step in obtaining and renewing a professional certificate or a position in the field. The official website of your professional association should provide information on their insurance requirements.
Clients might also require that you carry Professional Liability insurance prior to when they will work with you. You can find this requirement in contracts for business and be required to show proof of insurance prior to begin working with the client.
Even if you’re not required to have Professional Liability insurance, it could be prudent to maintain a policy. Many customers expect that the business or individuals they work with are insured. It demonstrates professionalism and shows your clients that you care about your reputation as a business and are ready to defend it, if required.
How much does Professional Liability insurance cost in Wyoming?
The cost of Professional Liability insurance can vary greatly. The average cost of Professional Liability insurance in The Equality State is $861 per year.
The cost of Professional Liability insurance is heavily affected by the kind of profession it provides cover for. In general, the riskier the work, the greater the price.
Other important factors in determining the price of Professional Liability insurance include:
- The size and turnover of your business – Larger contracts typically mean taking on greater risk.
- The amount of insurance coverage you’ll need – The more coverage you need the higher you could expect to pay.
- The persons covered Have they got what they need to be qualified for the job they perform and have they any previous claims background?
- Your personal claim history. If you have made similar claims before, the cost of your policy might be more expensive.
Is Professional Liability the same as E&O insurance?
Professional Liability insurance and Errors and Omissions (E&O) insurance offer the same insurance coverage. It can protect your business against claims based on fraud or error, and also negligence. It will pay for the costs of defense as well any settlements or damages that result from an action.
Recommended reading: E&O insurance vs Professional Liability insurance
How to get Professional Liability insurance for Wyoming business?
BizInsure makes it easy to compare Professional Liability policies, and to from the most reliable insurance companies. Obtain the comprehensive protection suitable for your small business.
Learn more about Professional Liability insurance in the states where you work.
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