Professional liability insurance is important coverage for all businesses to carry to cover all risks that may occur. Part of owning and operating a successful business is learning to manage risks. Businesses in Ohio that offer any form of professional services must have the right insurance coverage to protect against claims resulting from perceived errors or negligence.
Why Professional Liability Insurance is a Need
Find out more about what professional liability insurance covers and who needs it.
Why Businesses in Ohio Need Professional Liability Insurance: What’s Covered
As the recent Norfolk Southern train derailment has shown, accidents can occur, and the liability that stems from them is often significant. The spilling of toxic chemicals has created an ongoing effort to clean up the area, ensure safety, and cover healthcare expenses for those affected. Therefore, the cost of this adds up quickly, not to mention the legal fees associated with keeping your business in insurance claims. It is why it’s critical to have liability insurance. Professional liability insurance, sometimes called errors and omissions insurance, covers the following:
- Failure to meet an agreed-upon time constraint: Most contracts come with a timeline to which the business might have to adhere. A lawsuit could demand compensation if the business fails to complete the job by this deadline.
- Negligence or poor quality standards: Any business offering services for a fee must meet specific professional standards. Failure to meet these standards through negligence or other means is grounds for the customer to sue.
- Errors: Accidents happen, and accidents by professionals often have significant consequences. For example, a medical professional that gives a patient the wrong medication could cause severe harm and therefore face a lawsuit.
- Breach of contract: Failure to fulfill the terms of a contract is a violation. Customers are within their rights to call out the breach and demand compensation.
- Misconduct: A professional that violates the rules of their profession by failing to meet quality standards, working while impaired, or engaging in abuse is guilty of professional misconduct that could lead to charges and severe consequences.
Not all claims have merit. However, liability insurance offers protection no matter what. This type of coverage generally protects your business strictly from financial losses. Thus, it’s essential to know the details of the coverage.
Know What Isn’t Covered by Professional Liability Insurance
It’s equally important to know your policy does not cover. Professional liability does not protect your business from property damage or injury claims. Businesses in Ohio need a separate general liability policy for these types of claims.
Other uncovered events include lawsuits from harassment claims or wrongful termination. There also is a revelation about fraud and criminal activity committed by yourself or one of your employees.
All Businesses in Ohio Need Professional Liability Insurance
A professional liability policy pays for the costs of defending your business against allegations and any damages awarded for a covered event. Subsequently, every business that provides a service to clients in exchange for a fee undergoes a specific risk and requires insurance as protection from potential claims.
Businesses in Ohio should speak with their insurance agent to discuss their specific needs to get a customized policy. All businesses are unique, so you need an insurance policy that addresses the same risks that come along with the services you provide.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
