Professional liability insurance, also called errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work.
A simple mistake at your travel agency or medical billing company could result in a financial setback for one of your clients. To recoup losses, the client could decide to sue your company. Professional liability insurance can offer the coverage you need to keep your business going while addressing unexpected legal matters.
This policy provides liability coverage related to:
From a notary public notarizing the wrong form to a medical billing company making a mathematical error, mistakes can happen in any professional services business. Even if you’re not at fault, being accused of a mistake can be costly. If a client claims your error caused financial damage, professional liability insurance can help cover legal defense fees and other costs stemming from a lawsuit.
Delays or unfulfilled requirements can have a significant impact on your client’s bottom line. If a client takes a public speaker or an executive coach to court over a cancelled speech or coaching session, your professional liability insurance policy could help pay for the resulting legal fees, including settlements or judgments.
Whether you’re a travel agent or a tutor, your clients often have high expectations. If a hotel booked by your agency doesn’t live up to expectations, or a student fails a test despite extensive tutoring, your business could be accused of negligence. When the quality of your service is challenged, professional liability insurance helps pay for the cost of lawsuits, including hiring an attorney.
While professional liability insurance helps pay for lawsuits arising from mistakes and oversights, it does not provide complete protection. You should also consider coverage for injuries, property damage, and data breaches. Other professional services insurance policies to consider include:
General liability insurance: This policy can cover expenses related to customer injuries, such as an emergency room bill from a client who tripped over a power cable in your law office.
Business owner's policy (BOP): This policy bundles general liability coverage with commercial property insurance at a lower premium than if the policies were purchased separately.
Workers’ compensation insurance: Required in nearly every state for professional services businesses that have employees, workers’ comp can cover medical costs and lost wages for work-related injuries.
Commercial auto insurance: Business-owned vehicles must be covered by a commercial auto policy, which covers costs if your vehicle is involved in an accident.
Cyber liability insurance: This form of professional services insurance helps businesses survive data breaches and cyberattacks by paying for recovery expenses and other associated costs.
Are you ready to safeguard your professional services business with professional liability insurance or another type of coverage? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.