Do I need professional liability insurance for my business?

For businesses that sell their services as a product, fallout from unhappy clients can be costly and damage to your company’s reputation can be hard to manage.

Ideally, you want all your clients to leave happy and satisfied with your level of service, but what happens when one dissatisfied customer gets upset and decides to sue your company? Enter, professional liability insurance. This type of coverage can help protect your business from lawsuits resulting from client claims of late, incomplete, or unacceptable work due to negligent acts, errors or omissions, or breach of contract during business activities.

What is professional liability insurance?

Let’s say you’re a software company providing services to help run a client’s computer system. The client you are working for keeps asking for changes to be made. At the end of the project, they become disgruntled and are unwilling to pay for the changes and work completed. A lawsuit develops related to errors or omissions made during the process of completing the project.

 

continue reading »