Professional liability insurance, also often known as errors and omissions insurance, is a great way to protect your business against claims of negligence and disagreements.
Small business issues, such as minor mistakes and missed deadlines, can soon turn into much bigger issues. This can quickly become beyond your control.
If a client feels as though you have made a mistake or given them bad advice, they might suggest that you should be financially responsible for this error. This can have several negative knock-on effects on you and your business.
Who Needs Professional Liability Insurance?
Many businesses are required by law to have professional liability insurance.
If you operate a company that is not legally required to have a professional liability policy, then it could still be a smart and sensible decision to get one anyway. Doing so could save you a great deal of time, money, and stress in the future, as well as helping to preserve your professional reputation.
It is likely a good idea for you to get this kind of insurance if any of the following applies to your business:
- You offer professional services, such as consulting or contracting
- You offer professional advice and guidance
- You create designs, such as for engineering or architectural purposes
- You sell insurance
- You manage residential or commercial properties
Furthermore, if you work as a self-employed person, then you might find that a client asks you to have an insurance policy of this nature before they are happy to work with you.
Why You Should be Covered
Professional liability insurance will help you to avoid disruptions to your business should a problem arise.
When you make decisions for your clients or offer guidance or advice, you always run the risk of a client potentially being unhappy or dissatisfied. There is also the possibility that you may simply make a mistake.
In these instances, you could become the subject of legal proceedings, and this could prove incredibly costly. Professional liability insurance will help to cover the expense of any such claim against you and your business.
In addition to helping with direct costs from a fallout, your insurance may also pay for you to hire a public relations company to help limit the harm caused to your reputation. This can be the most valuable component, as it decreases the chance of any incident impacting your future success in business.
Boosting Your Business
Professional liability insurance is not expensive and will go a long way to boosting and enhancing your business. Having this kind of cover demonstrates to your clients that you always have their best interests in mind and that you are prepared for different outcomes.
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You will find that several clients and other businesses simply will not work with you if you are not covered for professional liability. So, get ahead of your competitors, and protect yourself and your business. This will allow you to keep your mind on the most important tasks and put any worries to one side!