Why You Need Liability Coverage From Your Insurance Company
Designed to cover professionals from negligence claims made by clients or patients, professional liability insurance goes by many names. When used in the medical profession, it is commonly referred to as medical malpractice coverage. Notaries public also require this guarantee, but refer to it as errors and omissions insurance. Real estate brokers, management consultants, and even website developers are eligible for protection.
What is it for?
Insurance is used to protect people in case something unfortunate happens. Car policies protect them in the event of an accident; medical policies protect them from unexpected illnesses; trade policies protect them from a number of mishaps. If there is a fire, theft or accident at work, the commercial variety will cover it.
Because you need it
Few businesses are lucky enough to survive for an extended period of time without being sued by a customer or employee. Liability coverage from an insurance company is the only shield most businesses have against trial attorneys. This goes double when an employer is competing in a risky industry like construction. Why?
A construction site is arguably the most dangerous work environment in the world. Not because people are careless, but because doing something, anything, is risky. Workers fall down the stairs; they trip over ropes; they cut themselves. Builders must take this risk and purchase the correct amount of coverage from their insurance company to protect them from financial ruin. But that is not all.
These policies not only protect the employer, but also safeguard their workers. If an electrician falls from a ladder or a carpenter cuts himself, a liability policy will pay his medical bills. Business coverage will also cover most attorney fees and court costs if someone files a lawsuit against you.
How much do you need?
Unsurprisingly, the size of the policy often depends on the size of the business. Most actuaries recommend at least $1 million of professional liability coverage for small businesses. Large companies and corporations obviously need a lot more and often have huge policies. Because the laws are quite common in the medical profession, malpractice insurance is the most common form of liability coverage.
Most doctors carry several million dollars of malpractice coverage at all times. When they work in a large practice, that number can be five or even ten times higher. Lawyers and accountants must also take responsibility due to the high rate of litigation in their fields. But what about everyone else?
numerous benefits
Any business that may be financially responsible for not completing a project on time may need to purchase a professional liability policy from their insurance company. This includes general contractors, architects, builders, and many, many more. These policies also cover personal injury, breach of warranty, intellectual property, and security. In short, any business that has more than one employee should have liability coverage.