B2Z Offers Professional Liability
Professional liability insurance is an optional coverage (also referred to as "errors and omissions insurance” or “professional indemnity insurance”) to consider for your small business—especially if it provides consulting or expertise to clients. Do you need this coverage for your small business? What does professional liability insurance typically cover or not cover? We’ve done the research for you below.
What You Need to Know About Professional Liability
- QWhat is Professional Liability?A
Professional liability insurance protects businesses that provide expertise and consulting services—such as accountants, barbers and beauticians, and computer consultants—from costs resulting from work mistakes, missed deadlines, professional negligence lawsuits (among others).
- QWhy do I need Professional Liability for my small business?A
Professional liability coverage is designed to ease the financial burden of claims of negligence or injury made about the professional services or advice provided by your small business. Whether you are at fault or not, this coverage may provide financial relief for related losses, attorney fees, and court costs.
- QHow does Professional Liability work?A
Simply stated: You pay premiums (on behalf of your small business), monthly or annually, and based on your coverage selections and business details. In exchange, the insurance company agrees to pay claims and associated expenses covered by the policy. Your policy documents are the legal contract between your small business and the insurance company.
- QWhat does a Professional Liability typically cover?A
Professional liability coverage expenses related to customer claims made against the professional services or advice provided by your company, such as: negligence, inaccurate professional advice, personal injury, and related legal costs.
- QWhat doesn’t a Professional Liability typically cover?A
Typically, a professional liability policy does not cover the following: criminal acts, employment claims, false advertising, copyright or trademark infringement, and regular claims not related to your expertise.