If you are a business owner or sole proprietor, you should consider getting professional liability insurance. This particular type of insurance shields you from lawsuits and claims that could cripple your business. Even if you have insurance or a nest egg to cover costs in case of an emergency, the legal fees could far outweigh what you have set aside. Get properly insured and be prepared for anything.
This type of insurance differs from general liability insurance because it specifically protects you against claims related to business services. Those in the medical, legal, or financial fields are most vulnerable to claims of malpractice or negligence, which is why it's so important for them to have both types of insurance.
Lawsuits can, and often do, devastate small businesses. Many companies simply don't have enough capital to keep afloat if they are sued by one of their clients. Since many malpractice and negligence lawsuits are subjective, it can be very costly to fight the case in court.
Many business professionals in the legal, medical, and financial sectors are expected to know their business inside and out and sometimes are expected to be miracle workers. Occasionally, we all fall short or make honest mistakes, which is why you need to have this type of insurance.
Your legal defense is covered by this type of insurance, including all court fees and your personal cost of hiring a lawyer. As these sorts of cases can sometimes drag on for months, court and lawyer fees can add up quickly and overwhelm your business, even if you have a rainy day fund set aside. This sort of insurance protects you from innocent mistakes, errors, and failed expectations.
If you haven't delivered services or missed deadlines for any reason, this type of insurance will cover you. It also covers general liability items like if a client or employee gets injured on your property or if you are accused of being negligent or discriminating against employees or clients. Some types of insurance can even cover property damage. Since there's such a wide range of things covered, most people find this insurance well worth it.
Although innocent mistakes are covered, illegal activity is not. Any criminal acts are considered outside of the protection of this insurance. Malicious data breaches and cybercrime are also not covered, so it's a good idea to make sure that you have a secure, cloud-based data system if you work with any sensitive information like medical, financial, or legal data. Secure data systems will keep you in line with mandates like HIPAA as well.
Professional liability insurance can save your business from financial ruin. It's a smart safety net for small business owners, and knowing that it's, there will give you peace of mind. We can help set you up with a plan that works for you. Contact Society Insurance Network at 307-226-8898 to get started today!