PROFESSIONAL LIABILITY INSURANCE
Professional liability insurance provides coverage for things that a general liability policy would not cover. This is an insurance policy for professionals who make a living off of their expertise, such as medical professionals, CPAs, and realtors.
Incidents can occur as a result of an error in providing the services that professionals offer resulting in actual injury or financial damages to a client. This type of coverage is typically provided on a “claims reported and made” form which can include prior acts. There are extended periods of time to report a claim, so you may not know of a claim because the work you performed happened long in the past.
If you’re unaware of whether or not you need professional liability insurance, get in contact with an insurance specialist at Van Leer & Edwards Insurance Services. We’ll be able to assist you in determining how much professional liability insurance coverage your state requires and get you the best pricing available.
Why Does Your Business Need Professional Liability Insurance?
As a professional, your services are held to a higher standard. If you are a licensed professional in almost any situation, you could be sued for an act or omission that causes harm to your client.
Here are some common scenarios in which professional liability insurance would protect you and your business.
1. You make a costly mistake with a client’s finances and lose them money. They decide to sue over the lost finances. Professional liability insurance can help pay for their losses.
2. You promised something in a contract and were unable to deliver and now you’re in a contract dispute with your client. Professional liability insurance would help cover the lawsuit expenses.
3. Your work doesn’t meet the industry’s standards. This is more common in construction and building where something that was built may not be up to code. When your client sues, professional liability will help with your legal bills.