As a business owner, professional liability insurance is a must-have.
As a business owner, you know that protecting your business is just as important as building it up in the first place. The best ideas, the best products, and the best customer experience can meaningless in an instant if an emergency takes place that prevents you from continuing to operate your business at a normal capacity.
That’s where insurance comes in. Every business should be insured against a number of potential hazards.
Professional liability insurance covers you should accusations of malpractice or misconduct prevent your business from operating normally, or if you find yourself having to pay restitution and legal fees as part of a lawsuit. Professional liability insurance allows you to maintain your business operations during and in spite of these situations and provides you with the financial security to move forward, recover from the situation, and continue to focus on building the success of your business.
Here are a few things you should know before you purchase professional liability insurance.
It Can Be Included in Your Insurance Package
As with any type of insurance, professional liability insurance should be packaged in with other types of business insurance. It may seem expensive if you’re looking at rates independently, and that may deter you from purchasing it. However, a good insurance provider will offer you a package deal which will reduce the overall costs of the professional liability insurance, as well as other types of insurance you purchase for your business.
It’s About Keeping Your Business Going
Having professional liability insurance doesn’t say anything about your business practices. It doesn’t mean that you are expecting to commit malpractice, or that you’re avoiding responsibility for a misconduct suit, or admitting guilt when you’ve done no wrong. It simply means that you’re preparing for the worst-case scenario. Sometimes, terrible things happen, things that may be out of your control. As a business owner, the prudent thing to do is to cover yourself so that you can continue to operate your business in the case of a malpractice suit.
Your Insurance Should Depend on Your Business
The amount and type of coverage your insurance provides should, of course, depend on the nature of your business. If your business is one that comes with a low risk of accusations of malpractice, such as a retail environment, you can probably get away with minimal coverage. However, a business that deals with more critical subject matter, such as physical therapy or medicine, should obviously have a higher level of protection.
You may have heard the term “malpractice insurance” used in the same context as professional liability insurance. Malpractice coverage can be considered a type of professional malpractice coverage but refers specifically to situations in which professional malpractice results in physical harm or injury. Whether or not malpractice insurance is appropriate for you will depend on the nature of your business.