Protect Your Business with Professional Liability Insurance

You can be an expert and the best business owner in your profession, but you can still make mistakes, because you are a human being. Failure does not necessarily imply a big mistake (though that can be the case). It means that sometimes you slip away, and if you do,CompareInsurance can help keep you protected with professional liability insurance.

Our professional liability insurance coverage can be customized for your specific business requirements, be it an architect or a photographer.

We are going to help you find the right policy and quote. A short series of questions takes less than ten minutes before we can offer you great business choices.

Moreover, anything can be done online, making coverage fast and convenient.

What is Professional Liability Insurance?

Professional liability insurance offers compensation if the customer appears to have been negligent with the professional services. If your customer is suing your company for services-related errors, you may cover any penalties or legal expenses which might arise from the negligence on the basis of a professional liability insurance policy.

And no matter whether you make mistakes, you're likely to be sued; 90 percent of companies end up in legal proceedings at some stage in their lifetime. That's a fairly large proportion, right? These enterprises are not all wrong. A consumer does not have to sue you for a legitimate cause. You could do what is your best job in mind, but you still have a problem.

See this example: Tell you're an IT advisor. The program recommended and downloaded for a customer caused your computer to crash and the day before a presentation at work they lost their records. Without introduction, they ended up losing potential customers and wanted to sue for the loss of lost business with that customer.

Now, is it your fault that the customer did not back up the job? Can you determine that the reasons for their loss were not to give the presentation? Whatever response, you will always have to pay for legal services to resolve the matter. Whatever the answers. Professional liability insurance can help pay the lawyer's expenses in situations like this and, if a judge decides to charge the money to a defendant, it can cover reimbursement ordered by a professional liability insurance company.

Do I Need Professional Liability Insurance?

If you are involved in offering advice or delivering a service, you can need professional liability insurance. You might own a shop where people come to facilities like a beauty salon or tutoring center, or you might work from home, providing customers with bookkeeping or graphics.

All these companies will benefit from professional liability if anything goes wrong. And let's be honest – things are happening regardless of how careful we are.

For instance, if you're a tax accountant and you mistakenly put the decimal point on form W-2. Years later, the customer is being audited by the IRS to pursue the mistake. You will be protected and covered by Professional Liability Insurance.

You can provide medical billing services but you use wrong codes which are much more reliable than the patient's medical status in your insurance and are billed. Here is another situation in which you may be covered by professional liability insurance.

Here are some examples of professional liability insurance businesses:

  • Accountability
  • Bookkeeping
  • Consulting of management
  • Management of the project
  • Planning and promotion of events
  • Project graphics
  • Organizer professional
  • Executive coaching/life/career
  • Marketing advisory services
  • Photography
  • Real property
  • Agency for Travel
  • And more! 

It's because, depending on the occupation, another name may be used to call it (for example, malpractice insurance, whether you're a medical or legal professional) if you are curious about why you haven't heard about professional liability insurance before. Professional liability covers the general scope of your company, however we recommend you take care of errors and omissions (E&O) insurance if you are seeking more specialized cover.

If you want to conclude large projects or government contracts, professional liability is a good idea, but this does not mean that you do not defend smaller projects. Your professional liability insurance policy will protect you, whether it has actually taken place or not, against negligent lawsuits from your professional services.

The coverage is a good idea even if it is not needed by your state. You are covered and secured from lawsuits which may be disastrous in the worst case scenario. Your professional liability insurance will never be included in the best case scenario.

What Does Professional Liability Insurance Cover?

Usually, professional liability insurance covers:

  • Neglect or suspected fault
  • Costs of legal security
  • Claims involving libel and/or slander
  • Copyright infringement
  • Claims and damages
  • And more

Professional liability should not cover:

  • Bodily injury to a third party
  • Cost of equipment damaged
  • Third-party medical expenses of injury
  • Intentional error or fault

The good news is that general liability insurance covers many things that are not related to professional liability.

How Does Professional Liability Insurance Work?

Let us examine a few examples of how professional liability insurance functions: In a historic neighborhood, an immobilizer shows clients a location. The agent forgets to say that the cellar, particularly in the winter months, is vulnerable to flooding. After purchasing a house, the new homeowners are angry at the imminent flooding issue, so they decide to sue the agent for negligence.

The professional liability insurance of the immobilizer agent will cover the costs of the proceedings. The immobilizer's only out-of-pocket cost is the deductible scheme.

Say the property owners just purchased the house a few years later did not sue the real estate agent. If the agent was insured at the time the home was being sold, the policy would reimburse them, provided that they had professional liability insurance during the proceedings. If your company is penalized for errors that you made before your policy was in effect, this form of coverage may be useful.

Or you may be working as a marriage photographer and are hired to film an external marriage. The bride and groom are very next to you, but it is raining on the day of the wedding. They reject the idea and when it rains, the couple doesn't really want many indoor pictures. Despite your urge for them to have a back-up plan. They plan to sue you after their wedding and want to have more pictures to recall their special day. You did nothing incorrect and did excellent work at the reception, so that there is no argument for the newlyweds. But they also sue you, which means that you're going to make laws. You will pay for your legal defense if you have professional liability.

Is Professional Liability Insurance Required by Law?

Professional liability insurance isn't mandated by statute, however for business owners who offer advice and services is highly recommended (such as accountants, lawyers, appraisers, etc.). There are customers and sellers who may require you to have professional liability insurance before they agree to hire you. This is not federal legislation, but it can still be legal. If a customer chooses to complete a project between an uninsured company and an insured company, the customer is most likely to choose the insured company.

Professional liability insurance will also allow you to launch bigger ventures with clients that are certain that they are covered if anything goes wrong, irrespective of whether it is necessary by law to employ protected firms.

Why is Professional Liability Coverage Important?

In case of the worst occurrence, professional liability coverage will provide critical security. It provides you with peace of mind, and helps customers to feel good about working with us. You can concentrate on your company.

Negligence will happen, even though you thought you did it all right. Professional liability insurance ensures that you, the company and even the finances of your family will not be harmed by the subsequent litigation and allegations if a client sues you for negligence.

Is Professional Liability Insurance Tax Deductible?

Your professional liability insurance premiums are tax deductible. The IRS takes into account the deductible business costs of your insurance premiums. If you want to learn more about the deduction of your insurance premiums on the income taxes of your company, please ask a tax preparer or accountant for advice.

Is Professional Liability Insurance Based on Payroll?

The payroll of your company will certainly play a part in how much you pay for professional liability insurance. Think about it in this way: the more staff you have, the more likely it is that your watch will have an incident of negligence.

At the end of the day, whether you or an employee made a mistake doesn't really matter. What has been accomplished is over.

It is really necessary for your company to go ahead and run, which is difficult to do if you have legal fees. You will maintain your business' finances stable, so you can continue to expand your company, being proactive and protecting against the professional liability insurance.