Professional liability insurance in Connecticut

Connecticut law doesn't require small business owners to have a professional liability insurance policy. However, certain professions require coverage, and some cities and counties might have individual business liability insurance requirements. You might also need this coverage to sign a contract, get a license in your field, or hold a position.

Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm. Even a frivolous lawsuit can be expensive between accounting for attorney’s fees, court costs, or a settlement.

Industries often at risk for professional liability claims include:

Professional liability insurance covers your legal defense costs if you’re sued over a mistake in your professional work.

Even if you’ve done nothing wrong, a legal battle can be expensive. In addition to your attorney’s hourly rate, you’ll likely be charged for administrative costs such as copying, filing, and travel expenses. You may also have to pay for expert witnesses to testify on your behalf, a court-ordered legal judgment, or a settlement to avoid trial.

Professional liability insurance covers all of the above, up to the coverage limits of your policy. The policy limits you choose should take into account how expensive it can be to fight a professional liability lawsuit. Connecticut business owners also need to determine the amount of coverage required to obtain a contract or work in a certain field.

This policy can be very affordable for small, low-risk businesses. Contact an insurance agent if you need help choosing the right type of insurance or other coverage options.

A professional liability policy covers a wide range of lawsuits, but it will not cover intentional harm you cause to others. Most insurance companies exclude:

• The illegal violation of any law, regulation, or statute
• Any services you provide under the name of another entity, such as a subsidiary business or organization not listed on your policy
• Defamation, such as libel and slander
• Discrimination

General liability insurance doesn't include professional liability coverage. Commercial general liability covers common business risks and liability claims such as customer bodily injuries, customer property damage, and advertising injuries.

If a customer falls and suffers an injury at your workplace, it would be covered by your general liability policy, which would include your legal defense costs. If someone sues you over unsatisfactory work, it would be covered by your professional liability coverage.

Read more about general liability vs. professional liability insurance.

General liability and professional liability are often the first two policies purchased by small business owners. However, businesses in Connecticut may also need:

Workers’ compensation insurance is required for all employers in Connecticut, even if the company only has one employee, including part-time workers. Workers' comp covers medical bills and lost wages for Connecticut workers who are injured on the job.

Commercial property insurance covers your physical business property and equipment. It’s often required to sign leases.

A business owner’s policy (BOP) combines general liability coverage and commercial property insurance. It's usually less expensive than buying each policy separately.

Commercial auto insurance is required in Connecticut. All commercial vehicles in Connecticut must be covered by the mandated minimum amount of insurance. It protects against financial loss in the event of an auto accident.

Cyber insurance, sometimes called cyber liability insurance, covers the cost of dealing with a data breach or malicious software attack.

Employment practices liability insurance (EPLI) will protect against lawsuit expenses related to claims of harassment, discrimination, and wrongful termination that professional liability typically won’t cover.

Complete Insureon’s easy online application today to compare business insurance quotes from top-rated U.S. insurance carriers. Our Connecticut licensed insurance agents can help answer any questions and provide advice on business insurance coverage. Once you find the right small business insurance, you can begin coverage and receive your certificate of insurance in less than 24 hours.