Professional Liability Insurance
If your business provides customers or clients with professional advice or products or services that result in them suffering a financial loss, you may be liable. If you are deemed liable, this insurance will protect you from the costs associated with, for example, a negligence claim made by a customer or client. Professional Liability Insurance provides you with extra protection in the event that someone is unhappy with the results of your advice or services.
Without this insurance, your business may not only be subject to financial risk but also other risks. You may store sensitive data which, if compromised, can upset those who use your services hoping they will remain secure. Given the many ways in which people can become dissatisfied with advice or services, investing in extra protection can help you rest easy knowing a remedy is available. Read on to see if Professional Liability Insurance is right for your business.
What Is Professional Liability Insurance Coverage?
Professional Liability Insurance is coverage is for different types of unwanted outcomes that can arise as a result of a business providing professional advice or services to a client or customer. If a client or customer determines that advice, products or services have proven less than satisfactory, they may seek a form of remittance. Remittance can mean that an individual or group will file a claim against your business, seeking to recover costs alongside other forms of loss. Depending on the industry your business operates within, the types of Professional Liability protections you need will vary. For example, different products often need to be recalled due to them not working, having been contaminated or having the ability to cause bodily injury to human beings. Whenever any of these unwanted outcomes occur, a business owner will want to ensure they can find a suitable course of action.
Do I Need Professional Liability Insurance?
If you have considered some of the potential liabilities you may suffer in the event that your professional advice, services or products are not satisfactory, you likely have a good understanding of the risks for your business.
General Liability policies protect your business. However, they do not protect your professional reputation. Investing in this insurance means that if anything goes wrong, you have a course of action available to bounce back. The existence of risk is inherent in owning a business and managing it is an important decision.