Any business can be exposed to liability suits arising from accidents caused by its employees. While the standard liability coverage included with most business insurance plans provides adequate protection for most occupations, some industries need enhanced protection against these destructive suits. If a mistake could cause a client with significant financial losses, you may need professional liability insurance to cover the risk.

What is Professional Liability Insurance?

The liability coverage included in the standard business insurance policy is mostly intended to compensate victims for physical injuries and property damage related to your business activities. Professional liability insurance covers financial losses caused by mistakes, errors, and omissions. For instance, if a tax accountant makes a mistake on a client’s returns, their professional liability insurance will cover any damages caused by their omission.

Negotiating settlements in arbitration and defending yourself against groundless claims can cost thousands of dollars in legal fees, possibly putting you out of business even if you ultimately win your case. Professional liability insurance will also cover these and other expenses, giving you the resources to achieve the best outcome and continue running your business.

Who Needs Professional Liability Coverage?

Most states require doctors, lawyers, and other professionals with significant responsibility to carry business insurance with professional liability coverage. However, companies in any industry with a high degree of responsibility should consider it, even if coverage isn’t required. This might include accountants, tax preparers, information technology professionals, and software developers, any one of whom might make a mistake that could cause significant losses for their clients.

Since 1986, businesses in Fairbanks, AK, have relied on Dunlap Agency, Inc. to protect the value of their investments. Whether you’re a small sole proprietor or a regional powerhouse, their experienced agents will find an affordable business insurance policy tailored to your need. Visit their website to learn more about the benefits of professional liability insurance or call (907) 456-5202  to speak with an agent and request a quote.