Professional Liability in Northfield, NJ
Your clients and customers depend on you and your employees to offer reliable services. However, even the most experienced and well-intentioned companies may eventually encounter scenarios in which they make a mistake or cannot deliver as promised. These scenarios can have dire consequences and threaten your business’s viability. Fortunately, professional liability insurance can help.
What Is Professional Liability Insurance?
As its name suggests, this type of policy is primarily focused on covering professionals’ liabilities regarding their services or advice. This type of insurance may also be known as errors and omissions insurance. Regardless of exact terminology, the right coverage can make all the difference in helping manage allegations and lawsuits arising from alleged mistakes, misrepresentations, negligence or other inadequacies in your services.
How Much Coverage Do I Need?
Your professional liability insurance needs can vary significantly depending on your unique situation. Consider your industry and specializations. For example, health care professionals may potentially cause more significant third-party losses and, therefore, require more coverage than a graphic designer. You should also consider your client base. If you work with large enterprises, incidents for which you’re at fault could impose far greater consequences than errors affecting small businesses. Be aware of any formal obligations as well. Certain professionals, such as those in the medical industry, are often legally required to have this type of insurance.
What Is Not Covered?
Although professional liability insurance can provide versatile coverage against many common allegations and accusations, it still has limits. Specifically, policies are not equipped to cover physical losses for which you’re to blame, such as third-party bodily injuries and property damage. Additionally, intentionally inflicted damages, such as those arising from dishonest or criminal acts committed by your employees, are not covered.
Do Small Businesses Need Coverage?
Indeed, most businesses that provide professional services or advice should prioritize this type of insurance. Without adequate professional liability insurance, even a slight oversight or isolated error could ignite costly lawsuits from which your business may not recover.
We’re Here to Help
Contact Insurance Agencies Inc. today to learn more about professional liability coverage or get a free quote.
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