Professional liability insurance in Georgia

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:

• 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.

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.

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.

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 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.

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

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.