Professional Liability Coverage for Businesses

Within our business insurance portfolio , we always like to tell our clients about professional liability coverage. Though business owners are experts in their field, everyone makes mistakes occasionally that could impact the way customers interact with you. What we mean is, if your customer or client thinks that you, as a business, caused them a financial loss, your client can sue you.

Professional liability and errors and omissions coverage are often used interchangeably, with very minor differences. Professional liability covers business negligence, misrepresentation or inaccurate advice whereas errors and omissions (referred to as E&O) covers all the prior, plus omissions and violation of good faith. At our firm in Greenville SC, both types of coverage will be explained to you to help you make the best choice.

Why Do I Need Professional Liability Coverage?

If your business offers a service to customers, we recommend you get professional liability coverage. This will protect you from lawsuit costs coming from your pocket if your business ever makes a mistake that ends up in court.

Who Needs Professional Liability Coverage?

We recommend that the following business types carry professional liability or E&O coverage:

• Web Developers and Marketing Agencies
• Consultants and/or Lawyers
• Hair Salons and/or Barber Shops
• Printing and Publishing Companies
• Vets, Pet Groomers or Pet Services
• Educators (some instances)

While professional liability is a great way to protect your business from being sued to the ground, it does not cover the following:

• Work Injuries or Illnesses
• Bodily Injury or Property Damages
• Data Breaches

Though professional liability covers a lot of mishandlings, and we strongly recommend it, we will also walk you through the appropriate coverages to fill in the gaps. This could include general liability insurance, workers’ comp insurance or cyber insurance.

How Does Professional Liability Insurance Work?

Typically there are two methods that insurance companies use to write you a professional liability policy: retroactive or extended reporting. Retroactive means that you are completely covered for incidents that happen on or after a date within your policy (before your policy ends and goes to renewal), whereas the extended reporting policy helps cover claims that are filed after your policy ends—usually within a one-to-two-month window. Advisors Insurance Agency is happy to walk you through both options and work with providers across the state to get you the most comprehensive, yet affordable, coverage.

Contact Advisors Insurance Agency in South Carolina

For a broad review of your business, you should contact Advisors Insurance Agency here in South Carolina. Though we’re located in Greenville SC, we have helped manage business insurance portfolios for businesses across the state, including areas like Simpsonville, Spartanburg and Columbia. If you’re a business owner who regularly offers advice or services, contact our team to learn about Professional Liability Coverage to make sure you’re protected today!