When searching for insurance, the type you’re likely to come across is General Liability, and while its a useful policy for any business, it does not transfer the highest risk exposure a service-based business carries. General Liability policies specify coverage for bodily injury and property damage only and nearly always exclude coverage for claims arising from professional service.
Professional Liability insurance is called many different things, depending on the industry: Medical Malpractice for doctors and nurses, Errors & Omissions for real estate agents and appraisers, and Technology Errors & Omissions for tech companies. For many businesses, a standard Miscellaneous Professional Liability policy can afford the right coverage. Given the various ways that people can become displeased with services, investing in extra protection can give you peace of mind.
Various specialized types of Professional Liability Insurance are available, including:
Technology Liability
Tech liability protects those working in the technology industry against any claims of negligence, omission, or error on behalf of the business. For example, if a graphic designer makes mistakes that cost a client money, the agency is protected against the associated costs.
Data Compromise Liability
Data compromise liability protects against any claims of negligence, omission, or error in security for businesses that store sensitive data. For example, if a company that offers secure data storage experiences a security breach or compromise, they will be protected against financial risk and other liabilities.
Architects/Engineers Liability
A&E liability protects architecture and engineering firms against any claims of negligence, omission, or error on behalf of the business. For example, if an engineer makes an error which costs the client money, the firm is protected from costs associated with the loss.
Professional Liability insurance protects you and your business
Coverage under this insurance includes legal defense costs, judgments, or settlements and provide you with the protection needed to maintain the reputation of your business. Professional Liability insurance protects you, your business, and your business’s assets from financial risks in the event a client claims you or an employee performed a service incorrectly.