One of the more challenging aspects of being an entrepreneur is choosing the right insurance policy for your new business. Whether it’s the number of available options or just the lack of familiarity with the terminology, the process of researching and purchasing insurance can lead to frustration, even leading some to make rushed decisions that leave them with inadequate coverage. To help simplify things for you, here’s what you need to know about one of the foundational coverages that you should anticipate having as part of your policy – professional liability.
What Is Professional Liability?
The website atminsurance.com reports that professional liability offers protection against third-party lawsuits where you’re alleged to have committed an error or delivered a substandard performance which led to the third party incurring a loss. An example of this is if a client sues his or her financial advisor for advice which led to substantial financial losses. In this instance, your policy would cover your legal fees as well as any other payments for which you’re found liable.
Who Is It For?
Professional liability is for almost everyone. Doctors and other health professionals are usually required to carry it, but it’s highly recommended for all professional service providers. Whether you’re a consultant, financial advisor or interior designer, you should plan to add this coverage to your policy.
Your professional liability coverage will serve as a foundation piece for the rest of your policy. Work with your agent to craft a policy that’s right for you.