Are you unsure if you should be carrying Carmel professional liability insurance? As a new business owner, it can be tough to determine which coverages, and how much, you should carry. In terms of professional liability, here’s what you need to know about it and why your business needs this coverage.
What is Professional Liability Insurance?
Professional liability coverage is also known as errors and omissions or malpractice insurance. As the name implies, it protects you in case an error or omission on your part causes a client to experience some sort of loss. For example, as a real estate agent, if you advise a client to purchase property that they end up losing money on, professional liability insurance will cover you in case they decide to file a lawsuit. On the other hand, you may also get sued if you forget to advise a client on an opportunity which causes them to lose out on significant gains. Both instances can be considered negligent and are covered under professional liability insurance.
Should You Purchase Professional Liability Insurance?
It’s recommended that you carry professional liability insurance if you offer professional services. For some individuals such as medical practitioners, it’s a requirement. Some of the other business owners who should carry professional liability include:
- Legal professionals
- IT contractors
- Business consultants
- Interior decorators
Now that you better understand professional liability insurance, it’s time to determine how much coverage you need. Talk with an agent who understands Carmel professional liability insurance for advice on the right coverage amounts for your business.