Professional Liability Insurance
Professional Liability Insurance Retcho Insurance Agency Closter New Jersey
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Professional Liability Insurance
This is a critical business insurance policy if you offer expert services to clients. It applies to certain professionals such as accountants, lawyers, and consultants. If a client sues you for negligence, mistakes, or missed deadlines, the policy can cover the legal fees and the compensation entitled to the client.
Experts in a specific field typically require professional liability insurance coverage because their services can lead to mistakes that can cause financial or indirect loss for their clients. These types of incidents are typically excluded from other business insurance coverages.
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Professional liability insurance can help cover the following claims:
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Negligence
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Misrepresentation
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Inaccurate advice
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Personal injury, like libel or slander
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Even if you did nothing wrong, your client may sue your company if they believe you made a mistake. You will have to pay for expensive legal defense costs out of pocket if you do not have coverage.
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What Doesn't Professional Liability Insurance Cover?
Professional liability insurance does not cover all claims. It will not help your business if you make the following claims:
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Bodily injury or property damage: You should obtain general liability insurance to help cover claims that your company injured someone or damaged their property.
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Injuries or illnesses at work: If one of your employees is injured or becomes ill on the job, you'll need workers' compensation insurance to help them recover and return to work.
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Data breach insurance can help you respond to a data breach if your company loses personally identifiable information (PII). Some insurers refer to this as cyber liability insurance.