Most people are bombarded with phone calls and emails daily from companies trying to sell them all types of insurance. To be fair, we all do need to have some insurance like car insurance, so some salespeople might find a customer for personal insurance policies.
Business insurance can be more complicated for company owners and vital to their protection and success. It is so important to make sure your business has the right kind and the right amount of insurance coverage.
What is Liability Insurance?
Any type of insurance is a protection against something that might happen. Business liability insurance protects a company’s assets and pays for obligations.
We live in a very litigious society. Anyone can sue your company for any reason.
For example, if a client thinks you are not skilled enough and can prove to a court that your business failed to provide a certain skill level, you could potentially be held liable.
This could cost you a lot of money in the form of a costly payout. That is unless you’ve planned ahead and obtained liability insurance for business.
Industries That Require Professional Liability Insurance
Many people think that only doctors and lawyers need liability insurance. However, many other professions could benefit from it and actually require it.
Medical Profession
Doctors need to have professional liability insurance to protect them against malpractice, errors, and negligence claims.
Although doctors perform very important and necessary services for the care and healing of people, unfortunately, they are at a constant risk of being on the receiving end of a lawsuit – both warranted and unwarranted.
It takes physicians years and years of education and hard work to build a reputation and a thriving practice. One lawsuit can literally ruin them financially unless they are protected by insurance.
When purchasing malpractice liability insurance, physicians should focus both on premium costs and coverage limits.
Purchasing this protection can provide peace of mind and reduce stress in the event of unexpected problems or mistakes.
Doctors try to do the best job they can in caring for patients, but should always take precautions to protect themselves.
Legal Profession
Any attorney practicing without liability insurance is not one you should hire. It means they don’t even value their own industry.
Lawyers are hired to represent, defend, or advise clients to do what is in their best interest. If the attorney fails to perform these duties to the best of his ability, a client could potentially lose a lot of money and may blame the lawyer.
No matter how professional an attorney is, it is possible that mistakes can occur. Mistakes can be due to negligence, carelessness, or simply an unexpected result.
It doesn’t matter why a client suffers a loss, they can still sue their attorney. This can have a financially devastating impact on the attorney and could also result in being expelled from the bar.
Independent Contractors
If something goes wrong on a job, contractors need to carry liability insurance to protect them. The specific types of insurance needed will depend upon the type of work done.
Some may need errors and omissions insurance and workers’ compensation insurance.Independent contractors need to pay lawyer’s fees and damages should they be sued for their work.
There are statutory requirements in some states and industries where having insurance is required, like construction.
General liability insurance usually covers injuries caused by someone else, slip and fall accidents, and property damage.
Real Estate Profession
Purchasing a home is the single largest investment people will make. When they work with real estate agents, both parties want the process to run smoothly.
What if a client is injured on the agent’s property? Is your real estate office able to handle the financial burden if sued?
Even if an agent or broker is careful and does everything within his power for his client, he can still be sued. Many claims might be unfounded or frivolous, but the responsibility for legal expenses and court defense will still fall on the shoulder of the real estate professional.
Make sure you know what is legally required for your industry, what your options are, and what the best insurance is for your profession. Do your research or consult a professional to make the best possible choices.
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