While General Liability Insurance cover mishaps that can happen to any business owner, Professional Liability Insurance covers experts that may face unique lawsuits.
So who counts as an expert?
Doctors, lawyers, IT consultants, architects, engineers and others.
Since your business relies on your expertise, you’re expected to have extensive training, knowledge and skills in your field. You’re also expected to meet standards set by your state, industry and client contracts. If you fail to meet these standards, do expect legal issues to come your way.
Professional Liability Insurance can help pay for lawsuits when clients accuse your business of:
- Work mistakes.
- Undelivered services.
- Negligent services.
Even if state laws or clients don’t require you to carry Professional Liability Insurance, having a policy can protect your finances by covering the high cost of a lawsuit.
The takeaway: even if state laws or clients don’t require you to carry Professional Liability Insurance, having a policy is still a good idea. It can protect your finances by covering the high cost of a lawsuit.
As a matter of fact, a 2017 survey conducted by Insureon found that, each year, more than one in five businesses face incidents (including client complaints and contract disputes) that can lead to professional liability lawsuits. According to courtstatistics.org, median costs for a small business start $54,000 for a liability suit, and can reach around $91,000 for the median contract dispute.
If you have any questions regarding Professional Liability insurance or any other type of business or other insurance, get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.