Every business, no matter how small, is vulnerable to liability suits that could force you to close, even if you ultimately win. However, those that provide highly specialized or technical services have an even higher risk, which makes professional liability insurance such a critical investment. These policies shield you from honest mistakes and frivolous claims, protecting your assets and the business you’ve built. Below are answers to some common questions you might have about this vital coverage.

What to Know About Professional Liability Insurance

What does it cover?

If you provide services other businesses rely on, a simple oversight or misunderstanding could cause considerable damage to your clients. In these unfortunate situations, a professional liability policy will compensate your clients for any damages they might have suffered.

What if a disgruntled client files a frivolous lawsuit?

Even meritless lawsuits can cost tens of thousands of dollars, which many small businesses can’t afford. Fortunately, a professional liability insurance policy will also cover the costs of your legal defense if you’re named in a frivolous suit.

Who needs professional liability coverage?

While general liability insurance is fine for most businesses, professionals in many fields need enhanced coverage. This includes accountants, IT professionals, and medical facilities, as well as engineers and architects. Essentially, businesses in any field in which a mistake can cause real harm should carry added protection.

Do I need professional liability coverage if I have a business owner's policy?

Business owner’s policies only include general liability insurance, which typically excludes lawsuits based on errors, omissions, or carelessness. Even if you already have a general liability policy with generous limits, you may need enhanced coverage to truly protect your business.
 

Protecting your business from the unexpected takes skilled guidance and a comprehensive insurance policy tailored specifically to your unique needs. Since 1999, the independent agents at Kirk Insurance Agency have provided Texas panhandle business owners with affordable professional liability insurance from several of the industry’s leading carriers, along with personal service you can trust. Visit their website for an overview of their products today. Call (806) 659-2794 to request your free quote.