Are You a Freelancer? You May Need Professional Liability Insurance

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:

  • Consultants
  • Attorneys
  • Engineers
  • Architects
  • Counselors
  • Accountants
  • 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?

Speak with a licensed agent at Uniamericainc.com to discuss which coverages best fit your unique situation. Call us directly 1-310-835-3373 or start a quote online.

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