As a small business owner it is vital to protect your company and yourself from claims. It is safe to assume that many small business owners know of and have general liability insurance; but, what about professional liability insurance?
While professional liability insurance is most relevant to businesses that perform professional services, any small business can benefit from it.
Examples of small businesses in direct need of Professional Liability Insurance include:
- Contractor Professional Liability
- IT Consultants
- Business Consultants
- Athletic/Personal Trainers
It is important to recognize the differences between General Liability and Professional Liability Insurance to better understand the advantage of having both.
General liability, in short, covers your business when a third party sues for property or bodily damage, as well as advertising “injuries” such as slander and copyright infringement.
On the other hand, Professional Liability Insurance (PLI), otherwise known as Errors and Omissions insurance, protects any professional advice, contractual agreement, or service that a third party deemed harmed them for which you are legally liable.
Defending a suit may be quite costly for small business owners. PLI can help prevent excessive costs to your company.
Check out these scenarios provided by Chubb to see the many ways PLI could have came in handy and saved a lot of people a lot of money.