Professional liability insurance, also called errors and omissions insurance (E&O), protects small business owners against legal costs related to unsatisfactory work. Though state law doesn't require this coverage, it's sometimes required to sign a contract or get a license in your field.
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 client claims for many Georgia businesses:
While Georgia law does not require professional liability insurance, you may need this coverage to sign a contract or to get a license in your field.
Professional liability is referred to as medical malpractice insurance when it applies to doctors and other healthcare professionals, such as therapists. Georgia law does not require medical professionals to carry malpractice insurance. However, it's likely that the hospital or other healthcare facility where you work will require you to carry this coverage.
The most common liability limits for physicians in Georgia are $1 million per occurrence and $3 million aggregate, though the specifics depend on your type of work and the requirements of your workplace.
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:
Those who work in construction and contracting, such as carpenters and electricians, could face a client lawsuit over construction delays. They could also face accusations of negligence if the customer is dissatisfied with their work or must make expensive changes or repairs after a job is finished.
Insurance professionals, including agents and insurance brokers, often deal with large amounts of financial data and must use their best judgment in advising their clients. If a client doesn’t have enough coverage, or the right type of coverage, they might blame their agent or the insurance agency for failing to make sure they were protected.
Even if you’ve done nothing wrong, a disgruntled customer might file a lawsuit if your advice leads to a financial loss.
Get professional liability insurance to protect yourself from claims that you didn't deliver on a deadline, or made a costly mistake.
Some clients require you to have this policy. It can protect you from expensive lawsuits for only about 60 dollars per month.
Don't put your business at risk. Apply for your policy today!
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.
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:
General liability insurance doesn’t include professional liability coverage – it's a different kind of business liability insurance. Commercial general liability covers common business risks and liability claims such as customer bodily injuries, customer property damage, and advertising injuries like copyright infringement.
If a customer falls and suffers an injury at your workplace, the resulting legal costs and medical bills would be covered by your general liability policy. If someone sues you over unsatisfactory work, the costs would be covered by your professional liability coverage.
Read more about general liability vs. professional liability business insurance policies.
General liability and professional liability are often the first two policies bought by small business owners. However, they aren’t the only types of business insurance coverage you need.
Workers’ compensation insurance is required for all Georgia businesses with three or more employees. Workers’ comp covers medical expenses and disability benefits for work-related injuries and illnesses.
Commercial property insurance covers your physical location and business property. 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 for all commercial vehicles in Georgia. This insurance policy covers legal costs if your vehicle is involved in an accident.
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 business insurance quotes from top-rated U.S. providers. Our licensed insurance agents can help answer any questions and provide advice. Once you find the right Georgia business insurance, you can begin coverage in less than 24 hours.