Are you looking for ways to protect your business from a client’s financial loss? Do you want to have more financial protection during an emergency? If so, then you need to invest in professional liability insurance.
Doing so can build more credibility with your clientele. The liability insurance will protect your company from things such as negligence, faulty services, or misguided advice. It adds protection for yourself, your company, your workers, and (most importantly) your clients.
See below for several reasons why professional liability is so important. These are the benefits of professional liability insurance that you’ll receive after you find the right policy.
Why Professional Liability Insurance is Important
1. Extensive Coverage
As you well know, certain types of business insurance aren’t always as extensive as they might seem. Take car insurance, for example. You have to ensure that your policy includes things like comprehensive coverage, uninsured motorist protection, and so forth.
That isn’t the case with professional liability insurance—also known as general liability insurance. It covers things such as:
- Injury damages
- Advertising and copyright claims
- Lawsuits, settlements, and investigations against your company
This can help you whenever your company is in a pinch. For instance, say you’re an HVAC company and one of your clients sustains an injury while your worker is performing maintenance at their facility.
With professional liability insurance in place, you can provide your client with the compensation they need to pay for their expensive medical bills. That client will work with your general liability insurance provider to reach a settlement, you won’t have to be involved in that process.
As with any form of business, the risk isn’t something you can avoid. With general liability insurance in place, you’ll be protected when those accidents occur. Your company’s financial future will be protected no matter what incidents take place. Its extensive coverage will protect in almost any situation.
2. Gives Your Clients Peace of Mind
Put yourself in the shoes of your clients. Which service would you be more confident in hiring for your needs: a company without financial protection or one that has insurance in place for any unforeseen emergencies?
We’d bet that you’d go with the latter. Why? Because it builds an extra layer of credibility with potential clients. They know that if, heaven forbid, an accident were to occur, their investment is protected by the company’s insurance.
This is the first step in building a long-term business relationship with your clients. The added layer of insurance protection will help build customer loyalty with your brand.
It shows that your business has a customer-first mindset. You aren’t just in your line of business to make a quick buck. You want to ensure that all of your clients are given high-quality service and are satisfied with the attention that they deserve.
Professional liability insurance can also help save the relationship between you and your clients if an accident were to occur. Your provider will step in to settle with your client, taking you out of what can often be a highly emotional situation.
Many business owners make the mistake of not investing in professional liability insurance to “cut costs.” But consider this: would you rather pay small premiums each month or a large lump sum on an unforeseen emergency?
Without professional liability insurance in place, your company will be on the hook for things such as your client’s medical bills, lost wages, out-of-court settlements, litigation, legal fees, and so on.
By investing in insurance through a trusted provider, your company is protected from any expenses relating to bodily injury or property damage to others.
The only expenses that you’ll have to pay, if an incident were to occur, are the premiums on your coverage (paid in full or monthly), as well as the deductible to activate your insurance company’s coverage.
4. Fits Your Industry’s Needs
You might be wondering “Does my company really need business liability insurance?”. There are a few questions that you could ask yourself to find the answer to:
- Does your service involve going to a customer’s facility to do work?
- Is there any risk associated with your products/services? (the answer is almost always “yes”)
- Does your industry require labor?
- Do your competitors have professional liability insurance?
There are certain industries in which liability coverage is most common such as consulting, engineering, construction, accounting, real estate agents, and even insurance companies themselves. Basically, any area in which a service or product could cost your clients financial or physical harm.
5. Security for Tiny Errors
You’d be shocked at what could cause a legal action against your company. Even the smallest things, such as a typo in your company’s documentation, can lead to a severe financial loss for your company.
That small of a mistake could cost your company thousands of dollars. But if you have liability insurance in place, it won’t cost you more than the deductible you’ve agreed upon.
Another type of professional liability insurance is called errors and omissions insurance (E&O insurance, for short). It helps protect you from any legal claims that declare that a mistake in your professional service has cost your client financially.
Invest in Professional Liability Insurance for Your Company Today
Now that you have seen an in-depth guide explaining the many reasons why professional liability insurance is essential, it’s time to invest in it for your company today.
Be sure to read this article for more information on how to install a safety culture in your organization and why it’s so important to do so.
For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.