Running a business requires you to have the right kind of insurance. You probably already know that you need general liability, property insurance, and workers’ compensation (if you have employees). What you may not realize is that you need a professional liability policy as well. This professional liability insurance definition will help you understand why.
What Is Professional Liability?
This type of coverage is essential for any business that could be held liable for a problem a customer has related to service. This could mean that someone believes you committed medical malpractice or that you’re a therapist who gave bad advice. Regardless of the situation, you’ll need this policy to help you should a lawsuit occur.
What It Covers
A professional liability policy covers a range of situations. In addition to negligence or inaccurate advice, it covers you if you’ve been accused of misrepresenting your products or services or if someone claims you violated his or her good faith by doing an unfair deal.
When you do decide to get professional liability and other policies to help you protect yourself, your employees, and your business be sure to hire a reputable insurance agency that is used to the industry your business operates in. Look for strong references and verified licenses, such as the insurance provided by Axis, before signing on the dotted line.