Professional liability insurance is essential for your small business. If you offer services or advice, you need protection offered by a professional liability insurance policy. This type of insurance protects you and your brand from lawsuits stemming from dissatisfied customers when they feel that you failed them in any way. It’s risky to try to skip on buying this necessary coverage. Find out why your company should get professional liability insurance quotes today.
Why Professional Liability Insurance?
Professional liability insurance comes with a price tag that impacts your operating costs and revenue stream. It would be easy to nix the expenses that this type of policy incurs, especially when you’re just starting out your business. Hey, running your own business is expensive! Plus, the likelihood that you’ll be sued is pretty low, right?
Unfortunately, nothing that you do can protect you from the threat of litigation. Whether you have an unhappy client who took your investment advice and lost thousands of dollars or a persnickety bride who claims your planning services forced her to miss out on the essential elements of her dream wedding, you expose yourself to the possibility of a lawsuit with every job you take on from clients.
Protect Your Pocketbook
Even if a threatened lawsuit is unmerited or gets thrown out, you as a business owner need to invest in legal counsel and representation no matter how small the legal threat to your business. Without a solid professional liability policy in place, you’re responsible for all of the costs of litigation out of pocket.
Even if a threatened lawsuit is unmerited or gets thrown out, you as a business owner need to invest in legal counsel and representation no matter how small the legal threat to your business. Without a solid professional liability policy in place, you’re responsible for all of the costs of litigation out of pocket. These expenses include legal fees, court fees, filing fees and, of course, any damages or settlement fees. In the event of a lawsuit, depending on how serious the complaint, there’s always some chance that you’ll lose. A loss is especially eminent if the court finds you at fault for the client’s problems.
Professional liability insurance protects you from the expenses incurred for when you are a defendant in court. From lawyer’s fees to settlement costs, your professional liability policy gives you the financial protection that you need to operate your business safely. This is a necessity because chances are good that you will make a mistake, or a perceived mistake, somewhere along the line.
Protect Your Reputation
Additionally, when your company faces legal issues, your reputation is at stake. Not only are you liable as an individual, but your brand’s perception may take a hit from lawsuits and the threat of litigation.
Even if someone threatens to sue as a vindictive measure against you personally, or if the frivolous lawsuit gets thrown out of court, your brand’s reputation is at stake. Should misinformation or a lack of response on your part get out to an audience, your brand could suffer tremendously.
The safety net of professional liability insurance keeps your credibility intact by giving you the confidence and security you need to deliver your high-quality products or services. Whether you’re in hot water over an honest mistake or are dealing with the challenge of unruly customers, your policy has your back and makes you appear more trustworthy and safe to deal with in the future.
Protect Your Sanity
Your professional liability policy not only helps you work through current legal issues but can safeguard against future lawsuits as well. Say, for example, someone sues you and your business is vulnerable because you don’t have a professional liability insurance policy. In this event, information may get out to your customer base at large and not one, but multiple customers report their dissatisfaction with your brand.
Get Out of Hot Water
A situation like this could quickly spiral out of hand and land you in more legal hot water than you or your business can handle. However, a personal liability policy lets you act quickly on lawsuits and settle matters in a timely fashion since you can afford the legal counsel and other fees associated with litigation. Plus, getting through a case where you’re deemed not guilty can keep would-be plaintiffs from pushing a non-issue.
Running a business is expensive. Dealing with lawsuits is exorbitant. While you may not think that your business budget can handle the burden of a professional liability insurance policy, you definitely can’t afford to be without one. Not only does this policy provide peace of mind and financial security if something goes wrong, but some states even require small business owners to purchase such a policy. Experts estimate that the average professional liability settlement costs a business almost half a million dollars. For most small businesses, this is enough to shutter their doors and never return to their niche again. Don’t get caught without the policy that you need to protect yourself and your brand. Whether you’re focused on the bottom line or keeping your reputation squeaky clean, consider adding a professional liability policy to your portfolio.
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