Business insurance is very important regardless of the type or size of business or the type of customers that your business service. There are different types of covers that you can take for your business, and the most common type of insurance covers is professional liability insurance. This type of insurance is usually important for professionals running their businesses such as lawyers, physicians, doctors, and accountants. And it protects against negligence and other claims that clients can institute.
Why professional liability insurance is important
Professionals usually offer specialized services, and thus they need cover against errors and omissions. For instance, medical professionals have medical malpractice as a form of specialized professional liability insurance. Professionals required this specialized insurance because the other forms of insurances do not cover against claims that may arise for professional or business practices such as misrepresentation malpractice and negligence.
However, the policy does not cover criminal prosecutions or any form of legal charge under civil law. Besides offering business protection, professional liability insurance also protects personal assets. It helps in maintaining a good reputation even when faced with legal allegations for wrongdoing, including for allegations that may be frivolous or false. This cover ensures that there are enough funds readily available for any client that might suffer damages as a result of your professional actions. This kind of insurance can help in covering legal fees related to a civil lawsuit as well as any compensation or settlement with a client.
Who needs professional liability insurance?
This kind of cover is important in most businesses offering professional services, and it is mandatory in some businesses. Here are some of the businesses that need professional liability insurance to help you in deciding whether your business needs one.
- Fitness professionals
If you are a fitness trainer or coach, you should consider having professional liability insurance. This is because a client or player training under your supervision might get an injury, and they could sue you, indicating that they got injured because of your negligence. Usually, the gym or fitness center should provide liability insurance for its trainers. Still, if you are a trainer, you can consider having personal coverage because not everything might be covered under the employer’s insurance.
- Beauty Technicians
For beauty technicians specializing in nails, hair, or makeup or anything related to that, it could be wise if you get the professional liability cover. This will help protect you if one of your tools slips and injures a customer, and they sue you for medical costs. Similarly, you may get an unsatisfied client with the service you provided, and they may bring a lawsuit suing for damages. The insurance may help in protecting your business from frivolous lawsuits and help keep your reputation/.
- Contractors
As a contractor, you work in a difficult environment where chances of something going wrong are very high. Therefore, it is wise to have professional liability insurance to cover against mistakes that can delay the construction to add costs to a project, thus increasing the chances of a lawsuit. Similarly, a contractor may miss meeting a deadline or be accused of delivering substandard work. In such events, the liability insurance will shield you from any costs that may arise.
- Photographers
Creative professionals such as photographers need professional liability insurance because sometimes you might miss an appointment, lose a memory card having important photos, or experience technical difficulties during an event. In the event, something like this occurs, your client might sue you, and with the insurance, you will easily cover legal fees and even settling the suit.
