Why You Need Professional Liability Insurance for Your Business
Professional Liability Insurance is insurance coverage that’s made to protect your business assets and interests against injuries and damages suffered by a client, visitor or other third party as a result of the negligence of you or one of your employees. In today’s litigious society, every business needs this type of insurance coverage.
How likely is my business to get sued?
Even if you and your staff are vigilant in the services you provide, have healthy client relationships and would never intentionally harm a client, the reality is that any dissatisfied client can make a claim that someone in your company was negligent in their advice or treatment or otherwise harmed them. The sad truth is, anyone can allege virtually anything—and proceed to sue. Sometimes being careful just isn’t enough—all it takes is for a client to feel they weren’t given the attention they wanted and suing becomes their means of retribution.
You don’t even have to be the primary defendant to be pulled in to a legal suit. When people sue, they often name anyone they believe was involved in the situation—whether truly warranted or not. This could include you, your business and your associates.
Does my coverage include my employees?
Depending on the scope of services being rendered, some businesses may name their employees on the facility’s Professional Liability Insurance policy. However, this coverage may fall short in fully protecting an individual accused of negligence in their work. It is strongly recommended that your employees secure Professional Liability policies in their own names in addition to any coverage you may provide them.
What’s at risk for you and your business?
Time. Regardless of guilt or innocence, legal proceedings can take months, if not years, to settle. That can mean time away from your work in discovery and court—time not spent running your business. A Professional Liability policy will help provide professional support so that you do not have to take time away from running your business todeal with litigation.
Money. Even if you are absolved of any wrongdoing, defense costs can be significant. From discovery to settlement, legal fees may cost thousands, consuming your company’s working capital and racking up debt. With Professional Liability Insurance you can choose a limit that suits your needs to cover these expenses.
Reputation. In business, reputation can mean everything. Defending a case of negligence can seriously tarnish your business’ reputation and the image you’ve worked hard to build. By securing Professional Liability Insurance, you’re showing thatyou take your profession seriously and you stand ready to protect your good name.
Coverage you can count on.
Sometimes you or your employees may make mistakes in the care or advice you provide to a client. When errors are made that are not intentional or criminal in nature, Professional Liability Insurance will be there to protect your business.
Ensuring that you and your staff follow the strict protocols of your discipline is essential for success, and is your best defense against unwarranted accusations. Buying a Professional Liability Insurance policy helps you be prepared and protected if a claim is made against your business.
Professional Liability Insurance from Lockton Affinity is tailored for your specific industry. It’s coverage you hope to never use, but can’t afford not to have.