Professional liability insurance in Florida

Professional liability insurance covers the cost of lawsuits related to the quality of your work, including legal fees and settlements.

It covers the following types of customer claims for many Florida businesses:

• Accusations of negligence, such as an architect who creates an unsafe building design.
• Work mistakes and oversights, such as an accountant who makes a mathematical error or fails to include the right data in their work resulting in a financial loss to the client.
• Inaccurate advice, such as an attorney who misinterprets a legal statute that results in a costly mistake.
• Missed deadlines and undelivered services, such as a web designer who fails to build a website before a client’s busy season.

In Florida, most small business owners aren't required to carry a professional liability insurance policy. However, you might need this coverage to sign a contract or to get a license in your field.

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 an unwarranted lawsuit can be expensive between 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 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. You also need to determine the amount of coverage required to obtain a contract or work in a certain field.

For example, healthcare professionals in Florida will likely need liability limits of $1 million per claim, and $3 million in aggregate per year.

A professional liability policy covers a wide range of lawsuits, but it won't 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. General liability covers common business risks and liability claims such as customer 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, including any 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 bought by small business owners. However, they aren’t the only types of insurance policyholders might need.

Workers’ compensation insurance is required for all Florida businesses with four or more employees. However, construction businesses must have coverage for every employee. This policy covers medical costs and lost wages for work-related injuries and illnesses.

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

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

Commercial auto insurance is required in Florida for any vehicles used solely for work purposes.

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

Employment practices liability insurance (EPLI) protects against legal expenses related to claims of harassment, discrimination, wrongful termination, and other violations of employees’ rights.

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