What You Should Know About Professional Liability Insurance
Mistakes and oversights can happen to even the most experienced professional. That’s why it’s important to have professional liability insurance. It covers expenses if you ever have to face a lawsuit.
What Is Professional Liability Insurance?
Professional liability insurance (PLI), also referred to as errors and omissions insurance protects professionals and businesses from negligence, malpractice and misrepresentation claims initiated against them by their clients. It provides professionals with the financial support they need if a client takes legal action against them.
What Does Professional Liability Insurance Cover?
Professional liability insurance covers legal expenses and defence costs if a client takes the claim to court, as well as indemnity costs to cover damages to compensate third parties. Some PLI policies also protect you and your business against claims for personal injuries, advertising liability and property damage.
Here are a few examples of situations where professional liability insurance would cover the costs of a lawsuit:
• Your business misses a deadline, and the delay causes a client to lose money
• A client claims your work resulted in damages that resulted in them losing money
• You overlooked an important detail that resulted in your client not receiving the agreed-upon service
Even if you aren’t in the wrong, professional liability insurance can still protect you. After all, you don’t need to be at fault to be sued. If you own a business, you may also need to consider commercial general liability insurance for situations where you could be liable for property damage or personal injury.
How Much Professional Liability Insurance Do You Need?
In Canada, small and individual businesses generally need at least $1 million in professional liability insurance. However, larger companies could require upward of $10 million. Here are a few questions you can ask yourself to determine what level of coverage you need.
• Is your business local, provincial, national or international?
• How many years have you been in business?
• How many years of experience do you have in the industry?
• Do you have employees? If so, how many?
No matter the size of your business or what industry you’re in, the friendly brokers at Eisenhauer Insurance Inc. can help you find the right insurance policy to protect your business from the unexpected.
Professional Insurance Brokers in Nova Scotia
If you own a business in Halifax or elsewhere in Nova Scotia, having professional liability insurance is a smart choice. At Eisenhauer Insurance Inc., we can help you secure a reliable and comprehensive business insurance policy to ensure you’re protected from getting sued. Contact us today to discover your coverage options or to get a free quote.