Starting a business is exciting. People who have worked for others are often eager to start their own business. According to the Small Business and Entrepreneurship Council, small businesses are the engine that drives innovation and job growth in the United States.

Small firms accounted for 63 percent of the net new jobs created in the U.S. in the last 20 years. The U.S. Census Bureau reports that 51.6 percent of businesses today are operated primarily from someone’s home, and 62.9 percent of non-employer businesses are home-based.

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That’s a lot of commerce happening from people’s houses. And while most people have insurance covering their homes, many business owners don’t think about the need to insure themselves in case they are sued because of their business. A homeowners’ policy and even a business owners’ policy may not be enough, especially if you’re offering professional advice to your clients. You may need professional liability insurance to protect yourself against financial losses from lawsuits filed by your clients or former clients.

Am I a Professional?

Think about it. To start a business, you need knowledge or training in your area of specialization. Hairdressers go to school and have to pass licensure exams. Accountants need a college degree and some sit for professional Certified Public Accountancy credentials. According to the U.S. Small Business Administration, “Virtually every business needs some form of license or permit to operate legally.”  These licenses tell your clients or customers that you are a professional – and with professionalism comes professional liability.

People expect professionals to know their business and perform the services they hire them for.  Customers can sue businesses that don’t perform according to their expectations, especially if the services cause harm to the customer or the customer’s business.

How can I protect myself?

Professional liability insurance is designed to protect you in case a client claims that he or she was harmed by a service you performed or advice you provided. Almost every kind of business could be vulnerable: management consultants, massage therapists, caterers, personal trainers, lawn care specialists, life coaches, marketing professionals, property managers – customers can claim harm from almost any business you might operate.

Businesses need professional liability insurance to protect themselves against lawsuits alleging

  • Property damage
  • Physical harm
  • Negligent professional services
  • Failure to uphold contractual promises
  • Mistakes
  • Omissions
  • Shoddy work and more.

Defending a lawsuit against any of these allegations can be expensive and embarrassing, even if you’re not at fault. Professional liability coverage means you won’t have to pay legal expenses to defend against lawsuits.

Where’s the best place to get professional liability insurance?

Lots of business owners turn to Peter Green Insurance Agency for all their insurance needs.  Our staff can show you a number of Professional Liability Insurance policies with different terms and conditions, and help you select one that meets your needs.  Give us a call today at 888.725.7776 or 714.258.2800.