We All Make Mistakes, But Some Cost More Than Others
Professional Liability Insurance is also known as Errors and Omissions (E&O Insurance), professional liability insurance is protection for your business from claims of negligence related to a professional service.
Who needs professional liability insurance?
Small businesses providing professional services or give advice to clients should consider purchasing professional liability insurance. It protects business owners for negligence because their work doesn’t meet a client’s expectations.
Professional liability insurance can also be required by a small business’ clients when entering into a contract.
Businesses that often choose professional liability insurance include:
- Real estate agents
- And more
Types of coverage
Professional liability insurance offers a variety of coverage for small businesses including:
- Alleged or actual negligence – Protects a business against actual or alleged errors and omissions when providing professional services, such as giving incorrect advice, an omission, or failing to deliver a service.
- Defense costs – Provides legal defense when a covered claim is reported.
Professional liability insurance cost
According to Bizinsure, the average yearly cost of Professional Liability Insurance for a small business is $767.24. As a yearly median cost this is $600.
For more ideas, read our recent article “Is Homeowners’ Insurance Required by the State of California?”
Subscribe to our blog below!