Business | Professional Liability

Professionals are expected to have the required knowledge and training to perform the services for which they are hired and they are expected to perform them to the standards of conduct for their profession. If they fail to use the particular skill as is expected by the client, they can be held responsible in a court of law for any harm they cause. Professional Liability covers the professional for negligence.

Whether a claim is baseless or not, mounting a legal defense can be extremely expensive to your company. Professional Liability insurance protects your company by covering your defense costs as lawsuits move through the courts.

Not all Professional Liability policies are the same. You should make sure that your Professional Liability Insurance policy includes the following:

Coverage that includes legal defense costs:
Your policy should not only pay for any resulting judgments against your company, but should also include all the defense costs leading up to any possible judgment.

Coverage extends to Employees & Subcontractors:
Your policy should cover work done by W2 employees AND 1099 subcontractors. Of course, subcontractors should also have their own Professional Liability policy in place in case they are also named in the lawsuit.

Worldwide Coverage:
If your company does business outside of the US, including Internet business, be sure to ask if your policy would cover such litigation.

Partial List of Business that Need Professional Liability Insurance

Advertising Agencies
Construction Managers
Cosmetologists (hair dressers)
Environmental Consultants
Graphic Design Services
Hedge Funds
Interior Decorators
IT Services Providers
Insurance Brokers and Agents