Do You Need Professional Liability Coverage?

If your company offers services or advice to clients for a fee, you need professional liability coverage. Without proper protection, you could find yourself paying hefty settlements and other legal costs. Even if you have done nothing wrong, you must still pay for an attorney to represent your case.

Coverage You Need

Miscellaneous professional liability insurance protects your business from errors or omissions made while performing professional services for clients. Property managers, advertising professionals, travel agents and other consultants are just a few of the business leaders that need this type of coverage.

Examples of Professional Liability Claims

Professional liability coverage protects your company in many different scenarios. Examples include:

  • Omissions – If a consultant recommends a new restructuring plan for a manufacturing plant and that plan fails to address all the potential issues with suppliers, the company can sue for damages and lost revenue.
  • Errors – A Human Resources consultant hires new employees for a firm and fails to conduct adequate background checks or references. Once hired, an employee is found to have insufficient training and experience to complete their tasks. The company files a claim to recoup their losses.

It is critical to discuss your business model with your insurance agent to ensure you choose the best coverage for your company.

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