Professional Liability Insurance for Service-based Businesses

Professional liability insurance, sometimes called malpractice insurance, may cover claims arising from your company’s liability for negligence or a mistake.

Why Does My Service-based Business Need Professional Liability Insurance?

Service-based businesses are exposed to various risks that can lead to legal claims. Such claims can lead to substantial financial losses and harm your reputation. Professional liability insurance may help reduce financial risks by covering legal defense costs and settlements.

Additionally, certain situations may require professional liability insurance. Some professionals, like healthcare providers, must carry this insurance, and clients may also require it.

What Does My Policy Cover?

Professional liability insurance may provide financial assistance if your business faces negligence claims. Even unintentional mistakes can cause harm to others. This coverage can help your company fight the claim and pay for settlements and legal costs. It may also help cover expenses for the affected person. Coverage is limited, so discuss what may and may not be covered with your agent.

How Much Coverage Does My Business Need?

Choosing the appropriate amount of professional liability insurance depends on your industry and risk exposure. Larger businesses or those in high-risk industries might need more coverage. Also, consider any contractual obligations and your claims history. Assess these factors to determine a coverage limit that suits your needs.