Suppose you are in a profession that includes advising your client’s specific business or representing your client’s interests. In that case, you must consider buying professional liability insurance as part of your business insurance coverage. It protects you against your client’s claims or losses caused by your services.
This blog will discuss five important questions about professional liability insurance. As you answer these questions, knowing whether you need this insurance coverage will be easier. Not having the coverage can otherwise adversely impact your business.
What is Professional Liability Insurance?
While discussing the questions about professional liability insurance that you must address when purchasing your business insurance, the first question that comes to mind is what is professional liability insurance.
The insurance covers you when your client thinks they have suffered business losses due to your professional services and may sue you. Errors can occur even with extensive experience and skills in your field. So, this coverage, also referred to as errors and omissions insurance (E&O) is vital insurance for you if you risk facing client lawsuits related to your professional services, employees, or products.
What Does Professional Liability Insurance Cover?
Professional liability insurance covers you regardless of whether the claim against you is accurate or baseless. In both scenarios, the litigation costs can be expensive. The insurance pays your attorney’s fees, court charges, and the compensation you may have to pay if the judgment is in their favor.
The insurance covers the following claims:
- Missed deadlines or delayed services
- Undelivered services
- Breach of contract
- Wrong advice
- Personal injuries like libel or slander
Does Law Mandate Professional Liability Insurance?
Another crucial question about professional liability insurance is whether your state requires you to have this specific coverage. You must know whether you need this coverage, as in several states, professionals such as doctors, lawyers, and real estate agents are mandated to carry this insurance.
You must consider having this insurance for the following reasons:
- It assures your client that your business reputation and performance matter to you
- If a mistake does happen, you have the resources to compensate them for their losses
Does Professional Liability Insurance Provide Coverage for all Business-Related Risks?
As a business owner, you may face many business-specific risks. While we have established that professional liability insurance is an important insurance coverage, there are other insurance coverages you may need for the comprehensive protection of your business. They include:
- General liability insurance
- Business owner’s policy
- Workers’ compensation
Where Can I Buy the Best Professional Liability Insurance Best-Suited to My Needs?
To ensure that your business is financially covered against all perils, including professional liability claims, you must contact your insurance provider and acquaint them with all the possible risks your business may face. This helps them to offer you the best coverage at the most affordable rates.
Secure Your Business’s Finances with McCarty Insurance Agency!
Contact us today for more information on whether your business insurance must include professional liability coverage. At McCarty Insurance Agency, we are committed to helping you select the right insurance coverages that ensure overall protection.