Professional Liability: What is it & Who Needs it?

Just about every business encounters risks and therefore can benefit from professional liability insurance. If you offer a service, your assets are even more at risk from professional liability cases. If you are in the business of selling your expertise, consider the importance of professional liability insurance. This coverage protects your company and your bottom line from customer claims of late, incomplete, or unsatisfactory work. Here is how professional liability works.

The Ins and Outs of Professional Liability Insurance

To remain successful in the service industry, you will need to keep your clients happy. However, it is almost impossible to ensure there will never be an upset client. So what happens when one decides to sue? This is when professional liability insurance steps up to the plate. It will cover the heavy burden of client lawsuits costs associated with:

• Work errors or oversights
• Undelivered services
• Missed deadlines
• Budget overruns
• Incomplete work
• Breach of contract
• Accusations of negligence

A client may claim your negligence had led to them enduring a negative outcome and take legal action in hopes of recovering their losses. Court defense can be extremely expensive. Don't allow missing a deadline to be the reason why your business goes under.

Protection Where it Counts

Professional liability coverage is legally required for certain professions, but it is still beneficial even if you do not fall under a mandated category. Any professional that offers services should consider the importance of this coverage. Businesses that benefit from this coverage include but are not limited to:

• Consultants
• Accountants or auditors
• Architects
• Engineers
• Insurance professionals
• Real estate agents or brokers

Some clients may even require a professional liability contract agreement to do business with you to know that they are protected if you do not follow through with your promises or if you break contract terms. Professional liability insurance is a valuable safeguard for your business. Note that the reasons for lawsuits will greatly vary based on your type of business, but this coverage will protect your assets from the costs of negligence-related cases, including lawyer fees and judgments. Keep in mind that if you have employees, their errors can also bring legal action by a client. Talk to an insurance agent to secure the right insurance coverage for your unique business.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!