What is Professional Liability Insurance?

Find out how professional liability insurance can help.

Business owners, are you laying all the right groundwork to protect your company from lawsuits? Although you may think you are, one common factor that many forget is professional liability insurance. Even just one simple error or overlooked item can quickly land your business in a courtroom, facing hundreds of thousands of dollars in fees. Fortunately, this insurance is there to cover your business through the hard times resulting from a mistake.

Professional liability insurance covers a variety of issues that business can face. Below are three of the more common types of policies:

  • Malpractice insurance – This coverage is designed for medical professionals. It protects against suits that allege negligence or mistakes. For anyone working in healthcare, consider this insurance.
  • Errors and omissions liability insurance – Lawyers, consultants, real estate agents, stock brokers, designers, architects, and others with a lot of responsibility on their shoulders should receive this coverage. These professionals offer their advice to earn a living. Clients who act on this advice may face financial loss instead, following through with a lawsuit.
  • Directors and officers liability insurance – For high-ranking executives in a company, this coverage handles a variety of circumstances, including unlawful acts, poor investment decisions, the release of confidential information, issues with hiring and firing, and other errors.

All businesses should be proactive and obtain liability insurance. After all, mistakes happen. However, one hefty lawsuit can take down any successful business, rendering your services obsolete. Professional liability insurance is there to ensure that your company and reputation is protected. If you work in a particularly sensitive industry, acquiring such insurance is vital to the livelihood of your business.

Talk to the professionals at Mayer Insurance to secure the right liability insurance, and the proper limits of coverage, to suit your business’s needs and risks.