Professional Liability Insurance
What is professional liability insurance?
Professional liability insurance protects businesses and professionals from losses arising out of negligence. Professional liability insurance is a more comprehensive form of Errors and omissions insurance. This type of insurance is vital for any company that needs to protect its financial standing and overall reputation. Professional liability caters to businesses whose goal is to protect their professional practices. Coverage generally includes protection against negligence, copyright infringement, personal injury, and more. Losses that can be covered by a professional liability policy include damages caused by things your business did or failed to do.Get A Quote
What does professional liability insurance cover?
Anyone who runs a service business needs professional liability insurance. As an example, let's say you own a concrete pouring company, and you're supposed to have a foundation poured no later than May 15th. One of your trucks breaks down and the parts are not readily available. In all of the commotion you forget to inform the site manager about the unfortunate delay. The site manager would incur increased project costs from having employees on site waiting for your work. He could sue to try to recover those costs. Similarly, if you are an esthetician and a client sues you claiming you caused permanent skin damage and they can no longer work in the modeling industry, your professional liability insurance would cover you for your legal defense costs as well as any payments up to your liability limit. Many business owners pair professional liability with General Liability Insurance for more comprehensive coverage.
How much does professional liability insurance cost?
The amount you pay for your professional liability insurance depends on the individual needs of your business. By assessing factors such as your business’s size, claims history, years in operation, and the type of business you operate, you can get a professional liability insurance policy that provides the coverage you need.
Typical business may pay between $500 and $1000 annually per employee depending on the factors listed above.Get A Quote
Who needs professional liability insurance?
Unsure if you need professional liability insurance? If your business offers professional advice or service to customers, you will need professional liability insurance. Some examples of businesses that can benefit from this coverage are:
- Accounting Firms
- Auto Repair Shops
- Management Firms
- Real Estate Agencies
- Consulting Firms
- Hair Salons
- Computer Networking Companies
- Child Care & Education Services
- Artists & Creatives
Not all service businesses can be insured by professionally liability insurance alone. The medical field, for example, is where a service business would also need medical malpractice insurance to provide the appropriate coverage to the business and individual. In the case of an incident, both the business and the owner would be protected. Other types of coverage may also need to be applied depending on the type of service and how it's provided. These may include equipment & product liability also auto & travel coverage.
You can always contact us to discuss specific needs. We are happy to help.
How much professional liability insurance do I need?
One of our insurance advisors can aid you in understanding the exact amount of coverage you need. They will discuss your businesses specific risks and number of employees to determine the coverage that is best for you.
Most small businesses will carry $500k to $1m in insurance. However, larger corporations may carry $2m or more in professional liability insurance.
Having the right amount of professional liability insurance is imperative to ensure any incurred costs do not end up exceeding your policy limit.