Oh my, what big words ‘professional liability insurance coverage’ are! We wish talking about insurance was as fun as watching Sesame Street used to be. The fact is, it’s not. But there’s a chance you need it.
Actually, it’s a serious subject. People looooove to sue for big bucks! You know what? You are at great risk if you offer services or advice for a living.
Without it, one day you could go get your mail and there it is… a summons to appear in court because a client claims you gave them bad advice.
THAT’S going to suck if you are not insured! Even if you settle out of court, it will likely be VERY expensive if you are not properly covered. So, do you need it?
Let’s find out…
Professional Liability Insurance? Who Needs It?
If you give out advice or provide a service then you need professional liability insurance. Architects, real estate agents, accountants, lawyers and surveyors all have professional liability coverage. (The smart ones do.)
Medical Malpractice is a form of professional liability insurance. Sometimes it is called medical malpractice, but it is not only for medical professionals. This form of business insurance covers mistakes you make that cause your client any type of loss.
We are all human and we all make mistakes. Even professionals make mistakes! It happens all the time. Just watch the news. Stories abound about mistakes and the lawsuits that surround them.
Professional liability insurance coverage saves the hind end of many a professional. For instance, you’ve heard of people waking up from surgery to find the wrong foot was removed. Professional liability insurance to the rescue!
It’s sad but true that mistakes as tragic as that can take place. If you make the mistake, you had better be covered!
We all make mistakes, professionals included. When lots of money is on the line, be sure you have the right insurance in place.
What Kind of Mistakes Will Professional Liability Cover?
- Inadequate communication and documentation
- Inadequate business practices
- Inadequate or incomplete information
- Breach of Duty
Not all lawsuits that are started hold water. Often, it’s a disgruntled client. They may not have a case but that won’t stop them from trying. Still, it is crucial that you are covered. You never know when an innocent mistake might come back and bite you in the butt!
Not every professional requires this type of policy. You should have it if you offer a service or provide advice.
Perhaps you are a surveyor. You might write down the incorrect measurements. A homeowner finds out after the purchase of a home that they own almost an acre less than was advertised. They may seek compensation from you.
This coverage is mandatory for you.
Examples of Professions Needing Professional Liability Insurance Coverage:
- Lawyer’s professional liability insurance: You have so many unique situations to sift through. Your client is counting on you to get it right. It is possible that you might miss something important. Professional liability insurance coverage protects you from such mistakes.
- Accountants professional liability insurance: Sure. You are dealing with clients’ money and large sums of it. If you make a mistake or leave something out, they will come after you. Without this insurance, you could find yourself liable. It’s not going to be cheap. Better have insurance!
- Architect professional liability insurance: You have a lot on the line. Designing someone else home or business… one simple miscommunication, misinterpretation or mistake can wreak havoc. Costly delays, accidents, or even injury can ensue. Guess who they want to pay for it? You.
- Professional liability insurance for engineers: You are a design professional. No matter how well you prepare for a project, mistake potential in your field is very real. Your financial security is in the hands of professional liability insurance.
- Professional liability insurance for consultants: As a consultant, you help businesses by solving problems and improving processes in place. Say you are contracted to come in and revamp a project. You tell the client it takes x amount of time. As you get into the project you see that the previous consultant did not fully articulate the problem. Now it will take you twice as long. You tell the client and they are livid. They state you did not do enough due diligence before signing on. You need this insurance to cover a claim, even if you were not at fault!
Even Salon Professionals Need Professional Liability Insurance– See Story and tips here.
General liability is not the same thing as professional liability insurance. Your employer may already have general liability insurance in place. That’s great. You still need general liability coverage. Usually, general liability doesn’t cover professional liability. Without this coverage, your butt is exposed.
How Much Will This Set Me Back Per Year?
How much does professional liability insurance cost? It depends on the type and amount of coverage you get. Quotes will vary. It depends on the state your business is in, the size of your business and the limits and deductibles you choose.
However, the AVERAGE yearly cost for a small business ranges between $758 and $985. It could be as low as $400/year. It can be way over the average. Speak to one of the agents at Hiscox to get personalized quotes that cover your needs and find out the exact cost for your particular situation.
Professional Liability Insurance Quote
In conclusion, professional liability insurance is something you need as a service professional. If you can cause financial harm or other harm, get yourself protected. Many clients demand that you have this insurance before they sign a contract.
Professionals in the business of offering advice or providing services really cannot afford to be without this insurance. It’s foolish to not cover your back with it. It means the difference between financial security and financial bankruptcy.
Get a customized professional liability insurance quote in one convenient place when you use Hiscox. Simply fill out their online quote request form. Get answers. It’s so easy to do this online! You will easily find the best rates this way. You are never under any obligation to make a purchase.
Therefore, make sure you are covered for mistakes that may result in financial harm to another party by getting FREE, no-obligation professional liability quotes today from Hiscox.
Make sure your business has the right coverage. Check out other types of commercial insurance.