Small businesses are the backbone of the American economy. They provide jobs, goods and services to the community and often serve as the foundation of a local economy. However, running a small business comes with a unique set of challenges, including the need to protect the business from potential legal and financial liabilities. Professional liability insurance is an important tool for small business owners to help mitigate the financial risks associated with running a business.
Professional liability insurance, also known as errors and omissions insurance, is designed to protect businesses from certain types of claims that may arise from the services they provide. This type of insurance is particularly important for small businesses that may not have the resources to pay for the legal costs associated with defending a claim. Professional liability insurance can provide coverage for legal fees, court costs, settlements and judgments.
One of the most common types of professional liability claims is a negligence claim. Negligence claims can arise when a professional fails to provide services in a competent manner. Professional liability insurance can provide coverage for these types of claims and can help protect a small business from the financial costs associated with defending and settling a negligence claim.
In addition to providing coverage for negligence claims, professional liability insurance can also provide coverage for other types of claims, such as breach of contract claims and copyright infringement claims. Professional liability insurance can also provide coverage for punitive damages, which are damages awarded to a plaintiff to punish a defendant for particularly egregious conduct.
Professional liability insurance can provide small business owners with peace of mind knowing that they are protected from the financial risks associated with running a business. If you are a small business owner and are looking for professional liability insurance, call the Insurance Factory at 561-287-7599 to get a free quote.