Do You Need Professional Liability Insurance?
If you aren’t sure, here are a few questions you should ask yourself first:
Are you licensed?
Are you educated?
Are you regulated?
Are you an expert?
Do you use those words to attract clients?
If you answered yes to any of the above questions, then professional liability insurance (also known as errors and omissions insurance) can protect you in the event of a lawsuit. Some professionals who seek this coverage include consultants, brokers, lawyers, accountants, financial advisors, contractors, etc.
Professional liability covers financial loss due to negligence, misrepresentation, violation of good faith or inaccurate advice. All someone has to do is accuse you of harming them, and without professional liability coverage, you could end up paying.
When people are relying on your expertise for a service, you will be held liable in the event of an error. If you are taken to court, most of your costs will arise from your lawyers (Ninety-five cents of every dollar goes to defense). And, the average cost for defense for this class of claim is $50,000.
If you are considering making the business decision to purchase professional liability insurance, contact me to review all the risks and costs and to get proper education on the benefits.