Yikes! Does Your Business Have Professional Liability Insurance
Mistakes happen, even to the most experienced professionals. Professional liability insurance shields your business from the financial and reputational damage caused by claims of negligence, errors, or omissions.
What Is Professional Liability (E&O) Insurance?
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a specialized policy designed for businesses that provide professional services or advice. It covers legal fees, settlements, and other costs if a client claims your business made a mistake that caused financial loss or harm.
Is Professional Liability Insurance Required?
While not legally required in Georgia, professional liability insurance is often mandated by:
Clients: Many contracts require proof of E&O coverage.
Regulators: Some industries require this insurance as part of their licensing or certification.
Even if it’s not required, having professional liability insurance ensures your business is protected against costly lawsuits and reputational damage.
How Much Does Professional Liability Insurance Cost?
The cost of professional liability insurance varies based on factors like:
Industry: Higher-risk professions like healthcare or legal services typically pay more.
Business Size: Larger companies with more clients may face higher premiums.
Claims History: A history of prior claims can increase your rates.
Coverage Limits: Higher limits provide more protection but come at a higher cost.
On average, small businesses can expect to pay as low as $50 per month.
Who Needs General Liability Insurance?
General liability insurance is highly recommended for:
Small Business Owners: Protect your operations from liability risks.
Contractors and Construction Professionals: Safeguard against potential claims arising from job sites.
Retail and Hospitality Businesses: Ensure coverage for customer injuries or property damage.
Service Providers: Protect yourself from liability claims related to professional services or advertising.
If you interact with customers, vendors, or clients in any capacity, general liability insurance is a smart investment.
What Does Professional Liability Insurance Cover?
Safe Harbor’s professional liability insurance includes:
Negligence Claims:
Covers mistakes or failures in your professional services that lead to financial loss.
Legal Defense Costs:
Pays for attorney fees, court costs, and settlements, even if the claim is unfounded.
Breach of Contract:
Provides coverage if a client alleges you didn’t fulfill the terms of an agreement.
Errors and Omissions:
Protects against oversights, clerical errors, or omissions in your work.
Libel and Slander:
Covers claims of reputational harm caused by your business communications.
Does Not Cover?
It’s important to understand the limitations of this policy. Professional liability insurance does not cover:
Intentional Misconduct:
Fraudulent or malicious acts are excluded.
Property Damage:
Physical damage to property is covered under general liability insurance.
Employee Injuries:
These fall under workers’ compensation insurance.
Cybersecurity Breaches:
Cyber liability insurance is needed for data breaches or hacking incidents.
General Liability Claims:
Injuries to clients or customers are handled by general liability insurance.
Why Choose Safe Harbor for Professional Liability Insurance?
Safe Harbor Insurance stands out because we offer:
Customized Policies: Tailored to fit the unique risks of your industry.
Affordable Rates: Competitive pricing to protect your business without breaking the bank.
Expert Support: Our team understands the specific needs of Georgia businesses and is here to guide you every step of the way.
Quick Claims Process: Efficient and supportive assistance when you need it most.