If you run a business that is responsible for providing professional services or giving advice to clients, you should be aware that you face a substantial risk of falling victim to a lawsuit for negligence. Lawsuits of this nature can cost you immense amounts of money and can even cause you to go out of business if you don’t have the funds available to keep you afloat. Luckily, professional liability insurance can help cover these costs.
What Is Professional Liability Insurance?
Professional liability insurance, also called errors and omissions insurance, is a type of insurance coverage that is designed to protect businesses from claims of negligence. These claims can happen for a variety of reasons but most often occur when a client feels your work does not meet their expectations.
What Businesses Should Have Professional Liability Insurance?
Anyone who provides professional services or gives advice to clients should consider purchasing professional liability insurance. Some examples of businesses that need this type of insurance are:
- Real estate agents
No matter how careful you are when providing professional advice to your clients, there is always the chance that you could make an error. Professional liability insurance can help protect you from the very serious financial consequences of a lawsuit.