What Is Professional Liability Insurance?
Even if you’re an expert in your business, mistakes happen. In the event that you make a mistake in the professional service you provide to a customer or client, it could lead to a lawsuit. Getting sued without protection will result in deep financial and reputation damage to your company. This is where professional liability insurance can help.
Professional liability insurance, also called errors and omissions insurance protects your business if you are sued for negligently performing your services, even if you haven’t made a mistake. Without coverage, you’ll have to pay expensive legal defense costs out of pocket.
What Professional Liability Insurance Covers
Liability insurance helps cover claims of:
– Negligence
– Misrepresentation
– Inaccurate advice
– Personal injury, like libel or slander
What Professional Liability Insurance Doesn’t Cover
Liability insurance doesn’t cover every kind of claim. It won’t help your business with claims of:
– Bodily injury or property damage: A general liability insurance policy helps cover claims of injury to a person or property damage that your business is involved in.
– Work-related injuries or illnesses: If your employees are injured on the job, you’ll need a workers’ compensation insurance policy to help them recover and return to work.
– Data breach: Cyber liability insurance helps cover the cost of a data breach if your business loses personally identifiable information (PII) or other sensitive data.
Who Needs Professional Liability Insurance?
Liability insurance is an important coverage that business owners who provide a service to a client or customer should have. You should consider liability insurance coverage if your business provides a professional service or regularly gives advice to clients. Sometimes it is requested by a client to have liability insurance to complete a contract.
CTG Insurance: Personalized Insurance Solutions
With 40+ years of proven experience, CTG Insurance delivers personalized solutions tailored to your unique needs, risks, and budget. Speak to one of our experienced advisors to find the right insurance policy for your business.
Have questions? We’re here to help.
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About the Author: Steven Elkins
