Business owners in Chicago who turn down professional liability insurance take on the risk of a possible lawsuit if one of their projects goes amiss. Here’s a look at how a professional liability insurance policy can help.
What is professional liability insurance?
Common professional liability insurance policies cover expenses that arise from a lawsuit such as defense costs, settlements and/or judgements. A lawsuit can be devastating for your small business.
Does your business need professional liability insurance?
- Beauticians & Barbers
- Business Trainers & Coaches
- Personal Trainers
- Real Estate Agents
- Travel Agents
Example. An employee at your beauty salon accidentally spills a hair chemical treatment resulting to severe burns to the face of the client.The client sues for bodily injury, emotional distress and may claim loss of income from time spent out of work.
Another example. As a wedding planner, you schedule the photographer and florist for May 13th instead of May 3rd.Imagine the bride’s saddening experience come wedding day with no flowers or photos.The client sues for emotional distress.
Professional liability insurance coverage will protect you, your employees and your business by covering defense costs, as well as possible settlement rewards for claims resulting from negligence in the professional service you provided.Whether or not these claims have grounds for a lawsuit, the time and fees spent on defense will be costly.
How much does professional liability insurance cost?
Professional liability insurance can sometimes be added to a business owners package policy, or BOP. BOP is a cost-effective, bundled package insurance policy. This policy can include more common coverages popular to small businesses such as general liability, property, business interruption, and more. Adding professional liability coverage to a BOP is the most cost effective approach to buying an E&O policy.