No matter the nature of your business, the one thing it should not be without is a good liability policy. Mistakes can happen at any time. And whether or not your employees intentionally or unintentionally omit or make mistakes is not something that your business should be financially on the hook for. To prevent you and your business from being sued, you need to know what is professional liability insurance.
Why You Need It
It is practically impossible for you and your organization to meet and exceed the expectations of every single client you work with. Although you work hard to provide everything that is requested and needed, there will be times where certain clients feel as if your organization did not do enough. When this happens, they can file a claim against you and your organization for errors and omissions. Even though this is often based on client experience, you can’t afford to ignore it.
How It Works
It costs a lot of money to defend a business against allegations, even if those allegations are false. The time and money that is spent on legal representation and potential settlements will come directly from your profits if you do not have a good professional liability policy. In the event of claims, litigations, settlements and lawsuits, your policy would cover any related expenses to absorb the damage so that your organization can continue with its operations.
The next time you find yourself wondering what is professional liability insurance, don’t forget to ask yourself if you can afford to defend your organization against every allegation and claim that is leveraged against it.