When it comes to Business Insurance a lot of companies have some level of risk when it comes to professional liability. This kind of coverage is not just for lawyers, accountants or doctors. Your business might have a risk in this area and you’re not even aware. Depending on the exposure, we recommend Professional Liability Insurance to many of our clients.
If you perform any of these services, you should consider Professional Liability Insurance sooner rather than later:
How to Reduce the Likelihood of a Claim
Most companies purchase general liability insurance to protect their business against certain kinds of claims. These claims could include bodily injury and property damage. It is very important for businesses to understand the difference between professional liability and general liability. As much as we want to run a perfect business, at the end of the day, mistakes (errors) can happen. If the mistake financially harms a client, you could be sued. Being prepared can go a long way to not only save your business, but give you peace of mind.
Lastly, just because Professional Liability isn’t required for a client/contract doesn’t mean you don’t need it or you’re off the hook. Being in Austin, TX, I work with a lot of tech startups. Some of these tech firms just want General Liability, and say, “that’s all I need right now”. Maybe they are waiting on funding, or it’s not required, or they’re just trying to save money. Some will go as far as getting an Umbrella because they think it will protect them. I’m not against Umbrella Insurance, just don’t think an Umbrella is going to pick up a professional liability risk when you don't have a Professional Liability Insurance policy for it to go over. If you have any questions about Professional Liability Insurance or any other Business Insurance, please feel free to contact me.
Commercial Insurance Agent