Risks in small businesses are common, usually combated with suitable insurance coverage. Business professionals need professional liability insurance policies to protect themselves and their businesses against several accountabilities.
If you are a professional offering consultation services or representing clients’ interests, you should have a professional liability insurance policy. Professionals needing this policy include engineers, accountants, consultants, physical therapists, real estate agents, personal trainers, architects, home health providers, etc.
Before you purchase such a policy, make sure that you ask the following professional liability insurance questions.
What Is Professional Liability Insurance?
Professional liability insurance is also called Error and Omissions (E&O) insurance. This insurance protects your business against mistakes, misinterpretations, and negligence claims. Clients who face any financial damage due to the business’s products, services, or employees might file a claim against the business, and professional liability insurance offers coverage in such situations.
What does professional liability insurance cover?
A professional liability insurance policy covers different kinds of claims, including negligence, errors, missed deadlines, breach of contract, omissions, undelivered services, etc. If the client claims for these reasons, the policy offers suitable coverage through attorney’s fees, paying settlements, covering court expenses, etc. This insurance offers protection for both true and false claims. It also helps in protecting professional reputation in court.
Is professional liability insurance required by law?
There are instances where you are legally required to have professional liability insurance. In some states in the USA, certain professionals need a minimum amount of coverage for doing business. Again, some professional organizations or associations set minimum coverage limits for their members. Whether required by law or not, having professional liability insurance is a criterion of many clients. It represents that the business operates ethically and professionally.
Is professional liability insurance the only coverage I need?
This is one of the most commonly asked professional liability insurance questions. Though professional liability insurance offers expansive coverage, there are many risks that this policy doesn’t cover. In such cases, you might look for other policies including workers’ compensation policies, general liability insurance policies, business owners’ policies (BOP), etc. Check out the details of each policy before making a final decision.
Where can I find professional liability insurance that fits my needs?
Businesses vary from one another, and so do their insurance needs. J. Archer Insurance Group is your one-stop destination when you are looking for professional liability insurance for your business. Our company has highly experienced and proficient insurance specialists on the team who will understand your business requirements and customize an insurance plan accordingly so that you have maximum coverage.
Looking for Quality Insurance Services? Contact J. Archer Insurance!
J Archer Insurance Group has created a niche among Houston, Texas leading insurance providers, consultants, and risk management consultants. Contact us to understand the services we provide and our way of working.