Professional liability insurance is defined as a form of insurance that can help pay for legal expenses when clients claim something you did – or didn’t do – hurt them financially.
No human – or small business – is perfect. This means all are at risk of being sued when they make a mistake or fail to do something important. Professional liability insurance is a safety net for your business mistakes, such as failure to deliver the work product your clients expected and for which they paid.
Professional liability insurance covers your legal expenses in cases where a customer alleges your work was:
In addition, professional liability insurance can protect you when clients claim you engaged in misrepresentation or violated principles of good faith or fair dealing.
When your mistake or omission lands you in court, your professional liability insurance will pay for your:
Professional liability insurance does not cover:
Small businesses that rely on selling their professional expertise (think lawyers, accountants, and engineers) can usually find professional liability insurance as long as:
Assuming your firm can meet an insurance company’s underwriting requirements, you will likely be able to qualify for this important form of small business insurance protection.
Professional liability insurance is designed for businesses that sell their expertise, such as architects, engineers, lawyers, accountants, and financial consultants and analysts. In theory, medical professionals such as doctors, nurses, and dentists need professional liability insurance, too. But their form of coverage is known as malpractice insurance.
Insureon helps small business owners compare commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start an application today to protect your business against claims of professional negligence.