If your business has been trying to cut costs, perhaps you’ve considered dropping some of your supplemental insurance coverage. This is never a good idea, although many companies look at their Miscellaneous Professional Liability (MPL) coverage as being an unnecessary expense. It sounded good when talking to the broker, but now it seems likes a frivolous expense. Here is why you need to keep your MPL insurance.
5 Easy to Understand Benefits
- A standard general liability policy will only cover claims that arise from actions or events involving professional services.
- Lawsuits, no matter how absurd or unsubstantiated, are expensive and can drain your company’s finances during your fight for resolution.
- MPL coverage isn’t required by law, but the professionals at Huntersure will tell you that most contractual work will require it.
- The value in MPL insurance isn’t in a dollar amount that provides a return on investment. It can be used to help solicit new business or projects and bring financial help during legal situations.
- The costs of legal claims, court settlement, and legal representation cost much more than you will be paying through your plan’s premium.
The arguments against MPL always come back to the value of the plan in relation to the costs and stress of dealing with a claim or suit against your company. Regardless of how unaffordable you may feel the contract is, you really can’t afford to not have this coverage when an incident unfolds.