Professional Liability Insurance for Business

A professional liability insurance for business policy is a specialized form of coverage that protects your practice against lawsuits due to acts of negligence. If your profession involves giving advice or instructions to members of the public, your clients may sue you for losses due to the advice you provided or failed to provide. Professional liability insurance for business benefits can prevent serious financial losses due to these lawsuits.

Running professional businesses in today's litigious climate has become challenging. Even after receiving thorough training, licensing and credentialing in your field, you still run a high risk of lawsuits from clients or patients. The public expects professionals to have advanced expertise in medicine, law, technology or other areas. If you give a client the wrong advice, either out of negligence or because you lacked adequate information about the client's needs, you may be at risk for legal action.

Which Professionals Need Coverage?

As a professional, you have the option to form your own commercial entity as a private practitioner. You may also practice as part of a small group of practitioners engaged in the same field. General commercial liability insurance policies do not cover damages due to errors or omissions that you make as you're providing advice or counseling. Professional liability insurance for business plans specialize in this form of protection.

If you're a doctor or lawyer, professional liability insurance for business policies may be referred to as medical malpractice or legal malpractice plans. Medical doctors, attorneys, psychologists, architects, therapists, family counselors and social workers who are in business for themselves should be protected with professional liability insurance for cheap business insurance coverage. Consultants and developers in high-tech fields may also require professional liability protection.

If you are a practitioner or consultant with an advanced level of training in your field and you run your own practice, contact a number of business liability insurance providers to compare quotes and determine whether this specialty business insurance is right for you. You've worked hard to earn the right to practice in your profession. Secure your business with a form of insurance that's designed especially for you.

What Does My Policy Cover?

The covered liabilities of professional liability insurance for business can be hard to define. Unlike general liability insurance, professional liability policies are not limited to physical injuries or loss of property. Professionals may be sued for failing to provide a service as expected, or by breaching a client's trust, whether or not any injury occurred. Misrepresenting your practice or neglecting to offer a treatment or service may be grounds for a lawsuit.

A professional who offers solutions to technical problems, relationship issues or health concerns may be held liable for giving incorrect recommendations. You may also be held responsible for leaving out important information during a consultation. These incidents are referred to as errors and omissions, or acts of negligence, and they are not covered by general commercial plans.

Your professional liability insurance for small business benefits pay for your legal costs if you are sued by a client or patient. Your benefits also pay for court costs, and for damages awarded to the plaintiff. No matter what profession you're in, you may be subject to significant financial losses if you don't have protection against negligence lawsuits. However, doctors and lawyers may face the highest damages due to the increased risk involved in these professions.

How Are Rates Determined?

Your insurer will base your professional liability insurance for business rates on a number of factors, including the type of practice that you run. Medical practitioners have a higher risk of causing physical harm due to errors or omissions. Attorneys also have a high risk. The public places great trusts in doctors and lawyers, and suits based on a breach of faith are not uncommon.

The size of your business may be a factor in determining your professional liability insurance for business costs. Businesses that include more than one practitioner, or that employ a staff of counselors or consultants, may have a higher level of risk than practices that consist of one or two professionals. Because there are so many variations in the way practices are organized, you should work with your insurer to develop coverage that's tailored to your needs.

The wording and terms of professional liability insurance for business contracts may be completely different from one field to another. Each profession is exposed to different liabilities, so no two policies will be the same. Use this website as your resource to find a provider in your community that has a solid history of insuring practices that are similar to yours. Take the time to find coverage that secures your practice's financial stability and helps you protect your reputation in the community.

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