How Professional Liability Insurance Protects Your Business

No matter what line of work you’re in, ensuring you are covered if deemed professionally liable for an accident or incident is essential. A major lawsuit can quickly bankrupt your business, and devastate your personal and financial life. Professional liability insurance helps protect you in the event of lawsuits, and may help you enact policies that make you less vulnerable from the outset.

What Does Professional Liability Insurance Cover?

In general, this type of insurance offers coverage if a client or third party claims damages due to your negligence, perceived or otherwise. Examples of coverage under this type of insurance may include:

  • General unintentional mistakes or negligence in the course of business
  • Claims of personal injury by clients
  • Instances of copyright infringement
  • Legal defense necessary for any of the above claims
  • Protection for employees or sub-contractors who work for your business

This list is not comprehensive, and coverage under liability insurance will vary depending upon the industry in which you work. Ultimately, speaking with an experienced insurer about your business activities and needs is the best way to assess how to adequately protect your company. Designing a policy of professional liability insurance commensurate with your business needs will then help financially protect your assets and employees, and ensure you can focus exclusively on your primary business activities.