professional liability Archives

Secure Your Assets

The court can assist lawyers in coming after your physical property and even the money in your bank account. There are several things you can do to protect these items before a lawsuit comes to your door:

Put funds into a retirement account – These are generally protected by law, so you can rest assured the funds will still be here.

Form an LLC – A Limited Liability Corporation is set up just for cases like these. It limits your personal involvement with the company while still maintaining some control.

Real Estate Protection Laws – Investing in your real estate can protect your money in the event of a lawsuit. Your money will be safe invested in your mortgage as the creditors cannot take your home away from you.

Contractual Protection

The law is black and white. So, if you move the liability from your company to another in specified cases, this can protect you down the road.

For example, if you own a business in a small shopping mall, then you could already be protected in the event someone slips in snow outside. Senior citizens are more at risk for these situations. Check with the property’s owner for who is liable in this case.

You don’t need a law degree to know suing can ruin a company.

In these cases, insisting on written contracts to make sure lawsuits find their intended target is your best bet. That way, if something unfortunate happens, the court can read your contract and absolve you of liability.

We hope you never have to deal with a lawsuit, but the reality is that small businesses face these threats daily. Learn to protect yourself from these guidelines and practice everyday safety. There are hosts of manuals, pamphlets, and safety guidelines out there for risk management in any business. Taking the time to learn these cases will give you the knowledge and surety to get yourself out of uncomfortable situations in the future.

EZ.Insure is here to help you make the best decisions for your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure or calling 888-615-4893. EZ.Insure makes the entire process easy, and quick.

If you sell products or provide services, you need professional liability. Your business can only benefit from this coverage.

Here, we’ll take a look at what Professional Liability covers, real-life examples, and costs.

business owner looking at professional liability coverage — *Running a company is difficult, but professional liability will bring peace of mind.*

What is Professional Liability?

This policy is often called “Errors and Omissions,” so if you see either, know they mean the same thing. Businesses need protection from professional mistakes, and this insurance type offers just that.

The worst-case scenario is a negligence lawsuit against your company. But, with this policy, you’ll be covered! A Professional Liability plan will help cover all costs and fees associated with the lawsuit, this includes legal fees and damages you have to pay. For businesses offering things like advice or services, it comes with the territory. An example of this would be a construction worker who is sued because a wall he built fell during a storm and the customer believes it was because of the companies negligence. A lawsuit like this has the ability to shut down a small business, but with professional liability, they would be covered!

This policy brings peace of mind, knowing that should unforeseen circumstances take place, you’ll be safe from the negative effects lawsuits bring to your company.

What is Covered?

While there could be exceptions, these are the typical circumstances covered by professional liability:

Business Mistakes– If your client incurs losses, and your business is at fault, then the financial costs will be covered.
Legal Costs – Should a lawsuit come your way, your company won’t have to pay the court fees or otherwise. This is regardless of the court’s decision.
Negligence– Should you incur a lawsuit due to failing to meet a client’s standards, then you are covered.

You might think these don’t apply to your business, but reading further will give you a better perspective.

Real-World Examples

Example: Let’s say you’ve been contracted to clean office space for a client. Your staff was sent out, but the client calls back, complaining that the work was unsatisfactory. To make matters worse, the client purchased the cleaning before a work event, so they are blaming the loss of the event on your company. Then comes the lawsuit.

Now, this example seems unfair, but even in an unfair case, you’ll still be charged several thousand dollars in legal fees. Do you really want that for your company?

man arguing on a call with headset — *Lawsuits come to even the best prepared. Liability can help recover when this happens.*

Example: You’ve performed surgery on someone but made a small medical mistake resulting in calling the patient back. The results are what you’d expect. While this mistake is human, it could cost you heavily in a negligence lawsuit. These range into over $100,000, especially with medical cases.

Example: Your business has a contract with another for financial advice, and you were confident that your advice would increase their profit margins, but it didn’t.

Now, the other company is suing you to make up for their own profit losses. Think this situation doesn’t apply to you? It can be any type of undelivered service. If you are promising something, simple human error or bad luck can intervene.

What Are the Costs?

Thankfully, professional liability is a less expensive option. However, you do want to keep continuous coverage to reap the benefits mentioned above.

For the average small business, professional liability will cost between $60-$80 a month–around $700 a year. This, of course, can be even less if the business is low-risk. If you run a high-risk business like construction, the costs can rise to nearly $2000 a year.

office table with plants, phone, and notebook for professional liability — *EZ.Insure is designed simply to get you access to the best coverage.*

Purchasing professional liability is easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe–without overspending.

EZ.Insure is here to help. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

At EZ.Insure, we know that starting a business can be overwhelming, so we’re putting together an easy series for reference. If you need more information, see our Business Insurance Masterlist and our Group Insurance Guide.

Tag: professional liability

Protecting Yourself from a Lawsuit

Professional Liability Coverage