For those who have a brilliant business idea and have spent years finetuning their operation to make it a success, protecting your hard work is essential. Even the tiniest of mistakes can have an enormous impact on your company, which could undo everything.
One way to shield your company against a lawsuit is by taking out professional liability insurance. Here we will explore how professional liability insurance could benefit your company.
Protects You from Common Risks
If you’re a company that provides professional services and advice to clients, you may want to consider obtaining professional liability insurance. A typical policy from a reputable professional liability insurance provider offers coverage for mistakes, negligence, errors, omissions, and breach of contract.
Regardless of how careful you are in the running of your company, we all make mistakes, and it’s human nature! However, if an error causes financial loss for a client or customer, they may seek compensation. This insurance is in place to remove the financial burden of lawsuits or claims from your shoulders, meaning you aren’t left footing the bill alone.
Protects a Wide Range of Businesses
A great advantage of professional liability insurance is that it can protect many kinds of small businesses. Whether you work in engineering, accounting, law, or fitness, a professional liability insurance policy can cover a huge range of occupations.
You may not be sure if your business needs professional liability insurance. One way to know is if you provide customers or clients with specialized services or give advice that they can use.
Gives Clients and Customers Confidence
Professional liability insurance does more than just shield your company against lawsuits and claims. This insurance policy gives clients and customers more confidence in the work you do.
Your business reputation matters more than anything, so to add professionalism to your company, having a professional liability policy in place is key. This is because it shows others that you take pride in what you do and are willing to defend your company in court.
Provides Cover Even if You’re Not at Fault
Whichever party is at fault, lawsuits can be notoriously costly. When you factor in attorneys’ fees and court costs, the price can quickly become eyewatering. If your lawsuit drags on for many weeks or months, the cost will continue to rise.
Should you opt for professional liability insurance, it can cover you against meritless claims. This means you aren’t left with a substantial bill after you defend your name in the courtroom.
Can Offer Protection for an Extended Period
You’ll find many professional liability policies are ‘claims-made’, meaning they can protect you based on when the claim is made. It doesn’t matter when the actual work was performed. This news is crucial, especially if a client decides to sue many months after you did work for them.
Coverage will start from the date agreed upon by yourself and the insurer. It will continue for a period, even once the policy has ended.
Whatever field of business you’re in, it makes sense to obtain professional liability insurance. Doing so will protect you in many ways you never thought possible.
Should you make a rookie error and find a lawsuit on your hands from a customer or client, having this insurance in place will offer the protection you need.
