Is professional liability insurance right for you?

On Behalf of McNabb, Bragorgos, Burgess & Sorin, PLLC | Dec 19, 2022 | Professional Liability

If you own a business or are self-employed in Tennessee, you might have wondered if you should get professional liability insurance. For example, consider insurance if you provide professional or contractual services or advice to clients. Also, some jobs and contracts require professional liability insurance.

After knowing who should get professional liability insurance, this article will explain what professional liability insurance is and why one might get it.

What is professional liability insurance?
Generally, insurance protects the person from an unlikely, unfortunate event. In this case, it can cover negligence claims from clients or customers.

And if the mistake causes a financial loss, the client may sue if it is worth the time and money invested. Also, professional liability insurance can cover copyright infringement, personal injury, and more. Finally, professional liability insurance can cover damages for things you have done or should have done.

How does professional liability insurance work?
The policies are usually claims-made, but they are occasionally occurrence policies. Claims-made policies only cover claims and events while the policy is active. But occurrence policies cover incidents during the policy period, regardless of when you file a claim.

If the client or customer sues, the policy will cover legal defense costs regardless of fault. Also, it will protect employees, including temporary staff and independent contractors.

How much does professional liability insurance cost?
It will depend on your business’s needs. For example, the industry you work in, the coverage limit and deductibles, your location, the number of employees, and several other factors.

Should you consider professional liability insurance?
You will have to weigh the benefits and risks of not having professional liability insurance and see what option is best for your situation. For some businesses, it may not be necessary.