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What to Consider for Professional Liability Insurance
Author David Schneider | Aug 29,2007
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Professional liability insurance is a business product that every company needs to have. This insurance is what is going to stand between keeping your company operational and functional after an incident and having to file bankruptcy. Smart business choices are what separate good businesses from bad businesses. Let buying professional liability insurance be one of your company's smart business choices.
Who Needs Professional Liability Insurance
Every business, no matter its size, needs at least a basic general professional liability insurance policy. The more complex a business is, the more insurance coverage they will need. High-risk businesses, like law firms and medical practices, will also need more professional liability insurance coverage than people with low-risk businesses will need.
Small Sized or Low Risk Companies
If you have a small, low-risk business with no employees, then chances are that the only professional liability insurance that you will need is a general professional liability insurance policy. A general professional liability insurance policy is very basic. It only covers bodily injuries and property damage up to a specified amount.
This type of insurance policy will cover you if there is an accident at your business or if an accident occurs at your customer's location, if you experience a loss because of theft or if your business property is damaged. The payouts on these policies are usually limited to a specific dollar amount.
Medium Sized or Moderate Risk Companies
If your company is mid-sized and/or if has a moderate professional risk level, then chances are you will need more than just a general professional liability insurance policy. However, that is a good place to start. In addition to your general liability policy, you may also want to add an errors and omission liability policy. This extra policy will protect you in case your professional work contains errors or omissions that cause problems for the customer. If you are a writer or if you produce reports or any other type of intellectual materials, then you may also want to add on a supplemental liability insurance policy that covers you for accidental copyright infringements.
Large Sized or High Risk Companies
As your business grows, its risk level increases. Not only do you have to worry about your own professional liability, but you also have to worry about your employees creating professional liability issues for your company. The types of professional liability insurance policies that you select for you company needs to consider several things. First of all, you need to look at the industry that you work in. Next, you need to evaluate what type of professional liability issues your company may face. Finally, look at policies that can cover multiple liability issues under one policy. |
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