Small Business General Liability Insurance

Professional liability insurance has become a critical piece of the coverage needed for professional advice and service providers. This type of coverage comes in many different forms such as errors and omissions, malpractice, and other forms. Like many other types, this provides a specific coverage option that may not be covered by general business coverage. Having a focused policy allows the professional individual or company to cover the bases should his or her service not live up to the customer’s expectations.
Professional liability insurance offers a different type of coverage. The general policy that most companies obtain is designed to cover employee injury and work related property damage. The former policy is fine-tuned to just the product or service and how it functions. Customers generally have a set of expectations when the service is provided. If the service does not live up to these expectations, a customer may sue for financial damage due to the failure.
Every professional that is an expert in his or her field should have this type of policy. Since they are considered an expert, customers are essentially at their mercy. In some fields, the service provider is very careful to explain that there are external forces that may cause their advice to be invalid. As an example, a stockbroker suggesting a certain stock portfolio does not guarantee that it will continue to perform as it has in the past. Though the advice is given in good faith, a market fluctuation may target the stockbroker for suit.
The advice or service provided by the expert provider is held to a higher standard. This standard places them in a position of liability. Even though most experts give the best advice they can, there will be times when it does not pan out. Software providers also have to be careful because the software may not perform as expected. In any of these cases, the higher expectations placed on the expert will force them to be held accountable.
The policy covers legal and other fees. Even when the expert is in the right, the lawsuit may have a foundation. Though the advice or product was provided in good faith, the expectations are not met for the customer. The legal fees to defend even a frivolous lawsuit can run in the tens of thousands of dollars. The more popular a provider becomes, the more susceptible they are to these lawsuits.
The protection provides more than a financial shield. Though the costs of lawsuits runs very high, the damage to a reputation can be even more devastating. With this policy in force, the company can assure customers that any issues regarding their product or services are covered by the company. If a product has an issue that should have been fixed, the policy can provide cover for the company to settle suits without major financial impact. This gives the company a chance to fix the error and restore faith in its reputation.
This policy should be kept separate from other policies. Including this policy as a rider or attachment to other policies may put limits on the overall coverage. If the maximum per policy is met, then all attached riders may be reduced in their ability to pay if the need arises.
Having professional liability insurance is critical for financial protection. Anyone who offers advice or products as an expert is subject to a higher standard. This standard can prove precarious if the customer expectations are not met.

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