Who Needs Professional Liability Insurance Coverage?
Professional Liability is Real: Reduce Your Risk Today
When most people think of lawsuits, they often think of personal injury cases where someone experiences physical harm. However, another type of lawsuit can be just as costly and damaging—professional liability litigation. This type of lawsuit arises when a customer or client accuses a professional of negligence or recklessness that leads to financial damages.
For example, a person may file a professional liability lawsuit against a doctor who made a mistake in diagnosis, a lawyer who gave incorrect advice, or an accountant who made errors in a client’s return. Professional liability lawsuits are typically complex and time-consuming, so professionals need insurance coverage in case of accusations of negligence.
As a business owner, it’s vital to ensure you protect yourself from such liability. Professional liability insurance, also known as Errors and Omissions insurance, can help cover the costs of legal fees and damages if a client sues you for something like negligence or misrepresentation. But how do you know if you need professional liability insurance?
If your business provides professional advice or services, it’s a good idea to have some coverage. That’s because even if you haven’t made any mistakes, you could still be liable if someone alleges that your advice caused them financial harm. Professional liability insurance can help protect your business in these situations.
Even if you’re not required to carry this type of insurance, it’s still worth considering if you want to avoid the financial risk of a lawsuit. Professional liability insurance can help protect against many risks, including errors and omissions, negligence, and malpractice.
While this type of insurance can help protect professionals from many risks, it is crucial to remember that it does not cover everything. For example, professional liability insurance typically does not cover intentional acts or criminal acts. As a result, it is best to carefully review your policy to ensure you understand what is and is not covered.
If your business could be held liable for errors or omissions, then professional liability insurance might be a wise investment. Ultimately, the best way to determine if this type of coverage is right for you is to speak with a business insurance agent. They can assess your risks and recommend the right policy for your business.
Contact LBP Insurance today to get started.