How Professional Liability Could Save Your Company

How Professional Liability Could Save Your Company

Featured Projects

November 30, 2021

If you provide professional service to clients, you may be held accountable for any financial damages should a mistake happen. Therefore, you need protection to cover the costs of defending your company from legal action should an incident occur, whether you made a mistake or not. This is where Professional Liability Insurance comes in. Professional Liability Insurance protects your business if a client files a legal action against you based on your mistake that caused them economic or financial losses.

Who Needs Professional Liability Insurance?

You should think about getting this coverage if your business provides contractual service, professional service, and regular professional advice to clients. Some of the most common professionals who have coverage are:

Real estate brokers
Financial consultants
Accountants and bookkeepers
Advertising and marketing professionals
Architects, designers, and engineers
IT programmers and professionals

What Does Professional Liability Insurance Cover?

This insurance policy helps cover claims of alleged negligence that happens from providing professional services. You’ll be covered for the following if you have professional liability insurance.

Cover legal expenses up to your plan limits
Compensation if you’re required to pay injured parties.
Claims for slander or libel, whether it’s true or not.
Copyright law issues, misunderstandings, oversights, and mistakes

What Isn’t Covered?

This policy doesn’t cover all your companies mistakes. Professional Liability Insurance won’t cover the following types of losses:

Property damage
Intentional acts
False advertising
Claims related to employment
Infringement on patents
Theft of trade secrets
Claims made outside your coverage period

However, it’s possible to add insurance policies, but providers vary in what they offer and how much it will cost you.

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