If you run a business, your general liability insurance protects you from many costs that may arise in the course of doing business. However, it doesn't cover your own mistakes that may cost clients money. To ensure you’re fully protected, you need a supplemental professional liability policy. Here’s what you need to know about this important coverage.

What Is Professional Liability Insurance?

This type of policy is also called errors and omissions insurance or professional indemnity insurance. It covers costs that may arise due to malpractice, negligence, and other types of errors you may commit during the course of business. It also covers defense costs against malpractice claims.

What Does It Cover?

General liability insurance will often cover claims made regarding any work you completed during your period of coverage. Professional liability policies, on the other hand, usually only cover claims made during the coverage period. This means that if you let your policy lapse, any new costs will not be covered—even if the events leading to the claim occurred during the time you were covered.

Who Needs It?

Professionals such as doctors and lawyers who have a legal duty to their client and who may be sued for negligence or malpractice have always needed this type of coverage to defend against such suits. However, today's economy is shifting. In addition to these professions, you may also need this type of coverage if you are a freelancer in the "gig economy." This is because you don’t have a formal employer to protect you from liability. From copywriters to freelance consultants, it’s important to guard against all contingencies. 

If you need an insurance quote for a professional liability policy or other types of coverage, contact Phillip Kent Beck Agency in High Point, NC. Serving Guilford County and licensed in North Carolina, South Carolina, and Virginia, their experienced agents not only help you find the right policy but also make it a point to educate you about your options and your unique coverage needs based on your situation. To get started, call (336) 434-2111 and speak to an agent today.