When you are making out your budget for the upcoming year, does the cost of insurance ever concern you? If you have been fortunate enough to avoid a lawsuit or incident that required filing a claim, you might not understand what generates the professional liability insurance cost of premiums.
Make an Informed Decision
Before you decide to skip renewing your coverage, Caitlin Morgan advises that you check the insurance plan through your employer and research the average defense costs should you find yourself in a legal battle. This will give you the information necessary to make an informed decision.
Common Claims Against Professionals
Administrative Errors. No one is perfect, and in the event that you or your employee makes a mistake with contract data or other administrative functions, professional liability can provide loss protection.
Negligent Work. If a professional is accused of failing in their obligation to provide accurate information that subsequently causes client harm or loss, a claim of negligence might be opened.
Contract Breach. If you promised a client a service that you weren’t able to deliver, you may be taken to court for a breach of contract and failure to provide services.
These are just three areas where professional liability insurance can provide protection. Don’t reject coverage because you don’t like the expense. A more expensive problem would be a lawsuit.