For any type of business, it is crucial to have the appropriate insurance coverage, especially when it comes to liability insurance. Since this type of coverage can make all the difference should a customer, client, or others file a claim against your business, having it in place can in some cases keep you from losing everything for which you have worked so hard. As for other reasons why it is so important, here is why every type of business needs this type of coverage.
What Professional Services are Covered?
By possessing professional liability insurance coverage for your business, it will generally cover any type of professional service your business is legally allowed to perform. Whether you are an engineer, architect, consultant, or interior designer, your services are covered.
Who is Covered by the Policy?
Once you have purchased such a policy for liability insurance, it will cover you and your business if your name and that of your business appears on the policy as the “named insured.” in addition, the policy will also cover any previous or current directors, employees, leased personnel, or others if they are included in a claim. Finally, should your business be involved in a joint venture, professional liability insurance will cover you as well.
What are the Benefits of Liability Insurance?
Since liability insurance can cover your legal expenses as well as any money your business is forced to pay in a judgement or settlement, it can prevent you from having catastrophic losses that could result in your business shutting its doors permanently. Remember that even if a claim is filed against your business that has no basis of truth associated with it, you will still need to mount a legal defense to prove your case. Since expenses can add up rapidly in these situations, liability insurance can be very helpful.
Who Might File a Claim Against My Business?
Depending on the situation in dispute and the work being conducted at the time, any number of different individuals or entities may file a claim against you and your business. Some of the most common may include private individuals, contractors, developers, public institutions, and even state or local governments. Yet whatever the case may be, having liability insurance in place can give you the financial safety net needed to overcome a claim.
No matter what type of business you have, purchasing professional liability insurance will be an investment that is well worth the money.