Do You Need Professional Liability Insurance?

Are you an independent contractor or the sole employee of a small business? If so, you probably know that you need to get policies like your own dental or health insurance, but you also might be neglecting professional liability insurance. This is a type of insurance that can protect you from any client who might sue you because they feel you did not fill your professional obligations and they or their business were harmed because of it. Also known as errors and omissions insurance, it is meant to protect you from your own clients. Do you need to consider this coverage? Read on to find out:

You first might be wondering what professional liability insurance covers. Though all policies are different, in general you will find that it covers negligence, defense costs, and services previously performed. With negligence, it will cover any alleged mistakes that you or your company may have caused to a client through your professional service. For instance, your designed software might have allegedly given the client a virus and they are suing you for lost revenue. This insurance will additionally cover the cost of your defense in this case as well as protect all of your past, present and future endeavors.

Typically, certain industries and professionals will need this insurance more than others. For example, architects, accountants and dentists will often carry a professional liability insurance policy. So will beauticians, counselors, IT consultants and travel agents. This can also be a great policy for people like personal trainers, photographers and landscapers. In fact, this policy is ideal for almost anyone who is not fully covered by an employer policy and even then, this type of insurance will offer extra protection.

If you are a trained professional and you are doing work, offering advice or otherwise assisting a client in any way that could harm them, their business or their reputation, it might be in your best interest to contact an agent in your area about professional liability insurance. Don’t take a chance on losing your business because of a situation like this when you could easily be protected by this policy.

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