Professional Liability Insurance FAQs You Need the Answer To!
Professional liability insurance is becoming more and more important, as well as more popular, in recent years and we get a lot of questions regarding what it is and why you need it. In our efforts to always keep you informed and make sure you’re protected, we’ve come up with a list of some of the professional liability FAQs we hear often. If you have any other questions, feel free to contact us and we will get you all the information and protection you need!
Top 7 Professional Liability Insurance FAQs
1. What is professional liability insurance?
Professional liability insurance offers coverage for businesses offering professional and personal services. It protects your business against claims that you caused harm to a client as a result of your advice or service.
2. What is the difference between errors and omissions insurance and professional liability insurance?
They are essentially the same thing and are used interchangeably regarding the same product.
3. Why is it important to have professional liability insurance?
It protects you in the event that a client is harmed from advice of service that you provided and are legally liable for.
4. What types of businesses should get professional liability insurance?
Any business offering professional and personal services can benefit from professional liability insurance but it is especially important for businesses in consulting where failure to perform services or incorrect advice could lead to a lawsuit (and businesses can still be sued even if they haven’t made a mistake). Professional liability insurance is necessary for protecting yourself against having to pay the full costs of defending against claims of negligence and damages award in the case.
5. What is a claims made and reported policy?
When it comes to professional liability insurance, it only provides protection as long as your policy is still active. This means that even if you had the insurance when the claim in question took place, you won’t be covered if your policy is no longer in force when the claim is made. For you, this means that you may want to consider keeping coverage in place even after projects have been completed or purchasing an extended reporting period.
6. How much do professional liability policies cost?
It varies based on a lot of factors including the type of business, size of business, actives conducted and the levels of protection you need.
7. How do I get a professional liability quote?
With help from the experts at Avante! We will make sure you get the protection you need for your business, at a price that is best for you, not for the company issuing the insurance. Don’t wait until it’s too late to protect yourself because with professional liability insurance, you need to think ahead and protect yourself and your business ahead of time. Click here to learn more about professional liability FAQs or to contact an Avante agent today.