Many business owners provide advice and expertise to their clients. Those clients rely on that advice to make decisions. Business professionals may face potential legal liability from customers who feel that were harmed by relying on the owner’s advice. In these situations, professional liability insurance quotes can help protect a business owner.
Professional liability insurance can protect a firm from legal issues related to selling a product or service. This form of insurance is important if the company provides advice or expertise. A client may pursue legal action if they believe that they were harmed, due to a company’s advice. That advice may include an error or omission on the owner’s part. The customer may also claim that the owner was simply negligent. A professional liability insurance policy can address each of these issues in your business.
Assume that an accountant provides advice on a client’s tax situation. The client takes the accountant’s advice, and signs a tax return prepared by the accountant. The IRS preforms an audit and charges penalties to the client, because the tax return was prepared incorrectly.
The client may pursue legal action claiming that they were harmed financially by the accountant’s advice. If the accountant has professional liability insurance, that policy may pay for the cost of legal defense. The policy may also pay for any damages awarded, up to limits stated in the policy.
To determine if you have a need for professional liability insurance, answer these questions:
- Do you provide advice or expertise to clients? Do your customers rely on that advice to make decisions?
- Does your profession require extensive training? Does your field require you to become certified?
- Do you carry a professional license for your work? Are you required to take continuing education courses to maintain your license?
- Does your industry require you to adhere to a code of professional conduct?
- If customers rely on your advice, is there any economic or other risk to the customer if your advice is incorrect?
If your answers to these questions indicate that professional liability insurance may be a need for you, we can help. Our professional staff can discuss your firm’s specific needs and generate an insurance quote for you. That quote will detail the professional liability situations covered by the policy, and the dollar amount of coverage. Request a free quote.