Estimated reading time: 3 mins
As a budding entrepreneur, you invest much of your time, money, and effort into getting your new start-up business off the ground. However, you’ll find that you’ll end up investing all your assets into creating a company that you’re proud of and that it can all be taken away from you just as quickly if you don’t take the relevant precautions to protect it.
Fraud, theft, vandalism, natural disasters, workplace injuries are just a few of the dangers that could compromise all your time, money, and hard work. Sadly, we can’t protect our businesses from everything life throws at us.
Still, we can invest in business policies such as professional liability insurance to protect ourselves and our assets from harm. This quick guide breaks down everything that newbies need to know about professional liability insurance to help keep your business safe – keep reading on for more.
What Is Professional Liability Insurance?
Right now, you’re probably thinking: what is professional liability insurance? Contacting business insurance experts such as Hartford will help you answer this question. As well as that, this is what we’ll aim to answer in this section. Let’s face it no matter how much expertise you have in your field or however many precautions you put in place; accidents are bound to happen.
If a customer feels as though they’ve been wronged or misled by your services, then they might seek legal action against you and your company. This is where professional liability insurance, also known as errors and omissions insurance, comes in as it aims to cover your business against claims from customers so that you’re protected if you make a mistake.
For more insight, consider contacting leading property and casualty insurance leaders The Hartford, or look at their website for more news and insurance-related topics touching on subjects like what is professional liability insurance and more.
What Does A Professional Liability Insurance Policy Include?
If a customer feels they have been wronged by your company or given false information, they are entitled to seek legal compensation. They may even press charges even if your business hasn’t done anything wrong.
Your business is covered against libel claims, slander, misinformation, negligence, and misrepresentation by investing in professional liability insurance. Failure to get the relevant coverage can lead to you having to finance legal fees out of your own pocket, which can be costly.
What Doesn’t Professional Liability Insurance Include?
When your business is in the market for professional liability insurance, you must be careful as it doesn’t cover everything your business may face. For example, professional liability insurance doesn’t protect you and your business from claims of bodily damage, damage to property, workplace injuries, sickness, or data breaches. So, it’s worthwhile seeking out other policies to ensure that you and your business are fully protected against all potential unforeseen circumstances.
Who Can Take Out Professional Liability Insurance?
Any business professional can take out professional liability insurance from lawyers, accountants, and physicians to protect themselves if a client threatens to take legal action. Those who operate in these types of job roles are more likely to take out business insurance, though, due to the nature of their job, as they will be asking customers to sign contracts, giving advice, etc. In addition, depending on which state you live in, business professionals can also be required to take out professional liability insurance.