Professional liability insurance in Georgia

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 witness fees.

Industries often at risk for professional liability claims include:

IT consultants and other tech professionals are susceptible to lawsuits related to system downtime, data breaches, missed deadlines, and errors. To protect against these risks, they can bundle E&O insurance and cyber insurance into one policy: technology professional liability insurance, often called tech E&O.

Those who work in building design, such as architects and engineers, are at risk of a lawsuit if a client accuses them of making a costly mistake. For example, a bridge could develop cracks over time, or a project could be delayed for months due to unforeseen circumstances.

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.

While Georgia state law does not require professional liability insurance, it's strongly recommended in many professions. Additionally, you may need this coverage to sign a contract, get a license in your field, or work in certain cities or municipalities, like metro Atlanta or Macon.

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.

In the real estate industry, professional liability insurance is referred to as errors and omissions insurance. While Georgia does not require this coverage for real estate agents and brokers, it's recommended for any real estate professional due to the possibility of a costly lawsuit.

For lawyers, professional liability is also known as legal malpractice insurance. Georgia doesn’t require attorneys to carry legal malpractice insurance. They are also not required to disclose whether or not they carry coverage.

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.

This policy can be very affordable for small businesses. Contact an insurance agent if you need help choosing the right coverage limits or other options.

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 insurance 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 types of coverage 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.

Cyber insurance, also called cyber liability insurance, pays for costs related to data breaches and cyberattacks, including the cost of notifying affected customers.

Employment practices liability insurance (EPLI), a type of management liability insurance, 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 small business insurance quotes from top-rated U.S. providers.

Our licensed insurance agents can help answer any questions about your coverage options and provide advice about your insurance needs. Once you find the right Georgia business insurance, you can begin coverage in less than 24 hours.