Professional liability insurance is a type of business insurance that most firms opt to carry in today’s lawsuit happy marketplace. In short, a professional liability insurance policy will protect your company from claims of damage or injury that arise from a claimant coming in contact with your company's products or services. If all or part of your business operations include dispensing professional advice or consultation, business liability insurance is even more critical for you to have, as it protects both you and your firm from being sued by a dissatisfied client.
There are different types of professional liability insurance that may be more suitable for your needs, including errors and omissions, or E&O insurance, and directors and officers insurance, or D&O insurance. In the first type, your firm is protected from the full financial brunt of undergoing a lawsuit brought on by a claim that harm was caused through advice given or contact with your company's products or services. In the second type, your for-profit or non-profit company's directors and officers are protected from personal liability for professional actions taken on behalf of your company.
While many business owners automatically assume that they have adequate coverage under a general liability or business liability insurance policy, quite often this is not the case. You will want to investigate what the coverage limits and exclusions are in any existing business or liability insurance coverage you carry, identify where there are gaps, and seek out a professional liability insurance policy to cover you where your other policies do not. If you are sued, you will want a policy in place to protect you from personal liability and to protect your company from damages and court costs that could otherwise send even the most profitable company into early bankruptcy. The best way to find professional liability coverage is to contact existing insurers and simply ask to have the policy added.