Have your clients asked you about whether or not they should get professional liability insurance lately? If so, this quick primer could help you answer their questions thoroughly and efficiently. In a nutshell, many professionals and small business owners could benefit from professional liability coverage, which helps provide critical protection against risks such as claims of negligence, breaches of contract, and more. Here’s what you should explain to your client about this critical type of insurance coverage.
It Can Help Protect Business Owners and Professionals From Expensive Lawsuits
One of the primary benefits of professional liability insurance is that it provides critical coverage in areas that can often result in lengthy or costly lawsuits. Those working in several professions and areas of the business world may be particularly susceptible to certain types of lawsuits and claims. Some common examples of these sorts of suits include:
- Allegations of late or incomplete work
- Claims of errors or negligence
- Contractual breaches via allegedly unsatisfactory work
- Budgetary excesses
- Work product oversights
It’s Helpful for Many Professions and Types of Small Businesses
Your client may not be sure whether this coverage is applicable to their situation, but the fact is that this coverage is helpful for many professions and types of small businesses. In fact, even those in certain professions who may not realize they need this coverage could potentially benefit from it. You may also want to remind your client that in some cases, professional liability coverage could be tailored to a particular industry or line of work. If your client falls under one of the following categories, they may want to seriously consider adding professional liability protections to their insurance policies.
- Medical professionals, including doctors
- Real estate brokers and agents
- Engineers and architects
- Insurance agents
- Accountants and auditors
It Could Complement Other Policies, Such as General Liability Coverage
Finally, professional liability works well when combined with other types of insurance coverage. For the most comprehensive professional protection possible, your clients may want to work professional liability into a coverage package that includes other vital types of insurance. These other policies that professional liability could complement well include, but are not limited to:
- Product liability
- General liability
- Copyright or trademark infringement
- Bodily harm
- Property damage
If your clients work in one of the professions listed above or if they own their own small business, they may want to seriously consider adding professional liability coverage to their total insurance package. Professional liability helps mitigate key risks in many professions and can help protect your clients against lawsuits involving contractual breaches, professional negligence, and more. As your clients weigh whether to add professional liability to their insurance coverage, make sure you inform them of these important aspects.
About Cochrane and Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (509) 462-1148.