If your business provides some kind of professional service, then it may be essential to protect your company with professional liability insurance. A professional liability insurance policy is an essential insurance policy that is in place to protect you and your business in the event of a lawsuit due to an alleged professional error or wrongdoing.
This type of insurance will help to protect your company’s finances against many types of liability claims and will pay out expenses such as lawyer fees, settlements, court costs, and judgments. Some of the main reasons to consider getting professional liability insurance for your business include:
Mistakes Do Happen
No matter how careful you are, there’s no guarantee that you are going to be able to completely avoid making a mistake. And when you are providing a professional service, the mistakes that you might make can often hold quite a lot of weight.
No matter how small the error, there is always the risk that it could result in huge losses for a client, which could see your business caught up in a lawsuit. Because of this, it’s best to get peace of mind by ensuring that you are covered by professional liability insurance. You can get a professional liability insurance quote tailored to your company from The Hartford.
Lawsuits are Common
There is no getting away from the fact that we are living in a litigious society these days. For small business owners, the question of having a lawsuit brought against the company is when rather than if. The Small Business Administration conducted a study that found in any given year, between thirty-six and fifty-four percent of small businesses have some kind of lawsuit brought against them.
Protect Your Personal Finances
Lawsuits are often an expensive situation, with court costs and lawyer fees adding up quickly, especially if the case drags on for a long time. Once the case comes to an end, you might then have to pay a judgment or settlement to the client.
If you don’t have professional liability insurance, then you may have to cover all these costs yourself, which can put a huge amount of strain on your personal finances.
Protect Your Reputation
Along with protecting you and your business financially, getting professional liability insurance can also help to strengthen and protect your reputation as a professional service provider.
Having a professional liability insurance policy and proof of this that you can show your clients demonstrates that you are a brand that values your good name and the work that you do.
It also shows that you know mistakes happen and there is no way to avoid some issues and that if need be, you are prepared to defend your company in court.
When you run a business that offers a professional service, there’s no guarantee that you won’t end up getting sued, no matter how careful and conscientious you might be.