Texas business owners purchase professional liability insurance to provide their business with protection from certain kinds of claims such as bodily injury and property damage. If you are a business owner, there are a few things you should know about this type of insurance.
Professional Liability insurance, otherwise known as “Errors and Omissions (E&O),” can protect your business against a claim from a third party who suffers a financial loss as a result of your services or actions. Some people file lawsuits if they feel like they have suffered a loss or damages due to a service you provided.
When someone does this to your business, it can significantly reduce your firm’s resources. Having professional liability insurance helps protect your assets and, most importantly, your business’ reputation. This coverage is really a life saver (or in this case, a business saver)!
At this point you are probably wondering what types of industries should get professional liability insurance. That is a good question, actually!
Below are some examples:
While this type of insurance sounds great, it does have limitations. If something happened before your policy was active, that incident cannot be covered since your coverage was not effective at the time.
There are also certain situations that are not covered under professional liability insurance. For example, prosecutions or cyber liability may not be covered. It is very important to take a look at your coverage to make sure you are protected if an event or accident takes place!
If Professional Liability Insurance sounds like something you might be needing for your business, our professionals at SOGO Wealth & Risk Management can help you out! We can discuss specific information regarding this type of coverage so you can make sure your business is protected.