What is Professional Liability Coverage?
As a business owner, you want everything to go just as it’s planned without any problems. But with the nature of life being what it is, mistakes are often made. Some of them can create situations that leaves one or several of your customers harmed as a result of a product, service, or situation where your company is deemed to be responsible.
These typically unforeseen events is where professional liability insurance can be of great value. Otherwise known as errors and omissions, professional liability is a coverage offering that protects you and your employees from the financial ramifications of an incident where someone is injured and your company is the one to blame, or at least is believed to be at first blush. Its proceeds can provide you with the money your company needs to pay for medical bills after someone’s been physically or emotionally injured, a financial settlement after a lawsuit, as well as the expense of mounting a defense if you believe you shouldn’t be held negligent and need professional advice or legal counsel. In other words, even if a mistake or incident isn’t your fault, professional liability insurance may cover you for the costs you incur to defend your company, such as retainer fees and court costs.
Professional liability provides for unnecessary lawsuits
As noted by the U.S. Chamber of Commerce, every year, frivolous lawsuits are filed, typically by individuals looking to gain financial compensation after a perceived slight. These lawsuits can range from the unusual to the downright absurd. Last year, for instance, a Manhattan man sued the New York City Transit Authority, several hospitals and two retail chains for two “undecillion dollars,” which is a 2 followed by 36 zeros. As you might imagine, the case was thrown out of court.
Though these types of lawsuits are out of the ordinary, lawsuit abuse is rampant, which may explain why attorney fees are often as expensive as they are. With professional liability protection, however, your business can be covered when legal fees result.
For more information on professional liability and choosing an amount that’s suitable to your needs, contact RC4 Insurance Agency, LLC today.
Article From Selective Insurance Company