Did You Know?
You’ll need a wide range of business insurance policies, starting with your landlord. Most startups need property insurance, employee dishonesty insurance, and workers compensation coverage. The majority of businesses can purchase an affordably priced “Business Owners Policy or “BOP” policy. However, when it comes to the general liability business insurance your company needs, focus not just on slips and falls. Focus on bigger mistakes that could lead to costly lawsuits. This is when professional liability insurance helps fill the gap.
You may have read statistics that a substantially large percentage of companies just starting out fail. In addition to lack of capital, another key reason for business failure may be attributed inadequate limits and types business insurance to protect potential clients from the risks you represent to your clients. Whether you are just getting your business off the ground or your scaling up, potential clients need to know you will protect their financial interests. Insurance coverage will be a consideration in who they may choose as an adviser or consultant. In the case where you may be requested to sign an agreement, request the insurance coverage requirements prior to agreeing to the contracting fees. The cost of coverage is industry specific, based your experience, historical data, and character of the services provided your client.
How Professional Liability Insurance Helps You?
Professional liability insurance is a type of coverage that provides protection from negligence claims similar to types of commercial liability insurance. However, this focuses in specifically on the mistakes you make or the failures that occur as a result of the advice and /or guidance you provide. Professional liability insurance goes further than what your basic general commercial liability business insurance plan. It gives you more coverage for a different type of risk and generally much larger financial claim. Operating in the disruptive, innovative, and comprehensive environment your business is working in today’s world insurance helps with financial security.
Who needs it?
- Are you making decisions about the operations of your company?
- Are you providing advice or guidance to your customers or clients?
- Are people depending on you to provide the very best advice or a very specific outcome?
If so it is time to upgrade your business insurance to reflect this higher level of risk. Professional liability insurance can help you get there.
The good news is that this form of commercial liability insurance is readily available and it can be customized to address the specific risks associated with your industry and even your local environment. Talk to your business insurance agent today about upgrading your coverage. It could be what keeps your new business operational and growing rather than shuttering its doors for a negligence claim.