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05 Aug Why You Need Professional Liability Insurance
Insurance for restaurant owners/managers, insurance for lawyers, and insurance for technology professionals all fall under the umbrella of professional liability insurance.
As a professional, you are dedicated to providing high quality, reliable service(s) to each one of your clients. Just the same, as a professional, you need to be prepared for a worst-case scenario. Professional liability insurance offers coverage to anyone involved in a professional business. With Prime Insurance Company, it covers things like liability claims, property claims, neglect, error, omission, and malpractice.
Why Invest in Professional Liability Insurance?
Insurance for restaurants and other professional practices keeps your business safe from lawsuits or other claims, whether it’s a customer who slipped and fell and wants to sue, a data breach that impacts clients, or a costly mistake that translates into a loss for your customer.
As a business owner or professional in practice, this gives you peace of mind so you can do your work to the best of your ability without worrying that you’ll lose all of your assets in a lawsuit. The insurance covers legal costs and can help offset any financial losses you may be facing. Even if you didn’t do anything wrong, and you know it, professional liability insurance is what you need to cover the legal costs for your defense.
That lack of stress and worry means your business and its employees can focus on business operations, client communication, and of course, generating profits. The risk of a legal battle is lessened, and even if a lawsuit comes up, you can rest assured that you have insurance protecting your company and your assets.
It’s also a good look for companies who care about their reputation (as all companies should!). Carrying liability insurance shows your clients that you are truly professional, with an interest in backing up your work with a guarantee. Some clients or prospective customers simply will not do business with a company that doesn’t carry liability insurance, so this small investment can turn into the difference between securing a client or watching someone walk away and seek out an insured competitor.
Having professional liability insurance also proves to your own company and its employees that risk management is important. You are paying for this insurance for a good reason, but that doesn’t mean you want to put it into effect needlessly. Insurance agents and insurers can help you identify and mitigate professional risk, so that your business is as careful and responsible as it can be.
In short, professional liability insurance is one of the wisest investments you can make — and it pays off.
Professional Liability Insurance Statistics
Let’s take a look at the numbers. The US Chamber Institute for Legal Reform conducted a study in 2010 that showed just how devastating a lawsuit can be for an uninsured business. In 2008, small businesses paid out $35.6 billion, out of pocket instead of through insurance. Similarly, medical professionals in small practices paid $28 billion in liability payments.
In fact, small businesses can actually be a target for lawsuits because lawyers know that many are without insurance, and many would rather pay out of pocket than go through court. No matter how small your business is, if you are working with clients, you should protect yourself and your company with professional liability insurance.
It doesn’t get any better when looking outside of small business. The Insurance Information Institute shows hefty rewards for product liability lawsuits, up to an average of $7,074,294 in 2016. Medical malpractice is at $3,519,756, while business negligence hit $1,588,285.
A claims study from 2018 indicates the majority of insurers paid a claim of at least $1 million or higher in 2017, including two with a claim between $5 million and $9.9 million and two with a claim between $10 million and $19 million. Clearly, going without liability insurance is incredibly risky, whether your company is large or small.
Who Can Access Professional Liability Insurance?
You may be asking yourself if you are considered a professional, and if you need professional liability insurance. For some, the distinction is fairly obvious, but there isn’t really an accepted legal definition. In many cases, it’s up to the insurance agent and the insurer to determine if a client falls into the professional category or if they need personal insurance.
Prime Insurance Company’s professional liability coverage is extensive and comprehensive, covering everything from medical and health professionals to volunteers, teachers, and insurance for restaurants. Our classes range from financial professionals like accountants and bookkeepers to insurance professionals including brokers and agents, to practically everyone involved in real estate and more.
We are well versed in handling even the most unique, challenging situations with custom solutions. With over three decades of underwriting experience, our team at Prime Insurance Company knows how to identify and manage risks for every type of professional in every type of practice. If you have been trying to get coverage and other insurers have sent you away, you can ask for a quote from Prime.
Essentially, if you are in the professional practice of any kind, your insurance agent can access coverage through our company even if you have been turned down or deemed too risky in the past. For insurance agents with hard to cover clients, Prime Insurance Company is here with our long list of classes and coverage.
Whatever the risk, whatever the profession, we will give your professional practice our full attention to determine what kind of quote we can offer to protect your business and its staff. With just a few moments and a little basic information, you can be well on your way to a quote for professional liability insurance that will give you peace of mind and protect your reputation and assets.