Protects You From Errors
We all make mistakes, but not all mistakes are created equal. Some cost more than others. So if clients sue you over an error that costs them money, Professional Liability helps cover those costs.
Example: An app you design keeps crashing and your clients are losing customers, which means they’re losing sales. They want them to reimburse you for that lost revenue so they sue you.
You can turn to your Professional Liability Insurance policy to help cover the lawyers’ fees, court costs, and settlements or judgments.
Protects You From Undelivered Services
Sometimes, things just don’t work out as planned. If a project doesn’t project the results as stated in your contract, Professional Liability Insurance can help cover the breach-of-contract lawsuit expenses.
Example: A consultant projects a high ROI in her proposal, but the results are not as expected. Her clients can sue to make up those losses and cite their contract for support.
Another example: Your client contract states that you’ll finish a project by a certain date. If you miss the deadline, your clients can claim you breached the contract and forced them to go over budget.
By having Professional Liability Insurance, you’re able to pay for your clients’ losses should any of these incidents occur.
Protects You From Negligent Services
Regardless of your expertise, there are simply some things that may get out of hand. If your work doesn’t meet industry standards Professional Liability can help pay legal bill when your client sues.
Example: Architects have the skill and education to design buildings that both meet client demands and comply with regulations. But let’s say an architect makes an oversight that compromises a building’s safety. The building owner can sue for negligence (the legal standard of being unreasonably careless).
A court may award the damages but it monetarily punish you. Lawsuits can cost between $3,000-$150,000.
If you have any questions regarding Professional Liability Insurance or want to get a quote, get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.