Professional liability insurance is necessary to protect against errors committed on the job. According to statistics, more than 60% of employees in the U.S. admit that they’ve made a mistake on the job when they feel tired. Exhaustion is one of many reasons errors can occur, though other common causes include inadequate training, stress, and disorganization. No matter the context, businesses need this excellent risk management plan to protect against these risks. Find out how professional liability insurance helps with workplace mistakes.
Professional Liability Insurance Offers Protection
The most significant benefit of professional liability insurance is its protection in the aftermath of a mistake. Even if the error in question was relatively minor, clients and other parties might claim that they have sustained loss or damages due to the error. In these cases, your company needs errors & omissions insurance to offset the risk of litigation and cover other resultant expenses. Most small and medium-sized businesses don’t have the funds to cover these costs, so insurance is essential.
Shield Your Company From Litigation Costs
Litigation is, unfortunately, a potential consequence of professional errors. If professional liability escalates to the point of a lawsuit, your business will need a solid supply of resources to draw from. Investing in professional liability insurance will allow you to face this situation and minimize its impact on your bottom line. The correct liability policy can do this by covering the cost of legal counsel and other associated court costs.
Offset the Out-of-Pocket Cost of Settlements
One of the most burdensome legal costs is the expense of a potential settlement. If a workplace mistake prompts a lawsuit and the lawsuit goes to trial, the jury may award the litigant a settlement to compensate for any damages they suffered. Conversely, a litigant may receive a settlement if your company chooses to settle out of court instead of going to trial. You’ll need professional liability insurance to cover the payout cost.
Protect Your Personal Assets
It’s important to note that litigation after an error doesn’t only affect your company. In some instances, it may also affect your own personal assets. Any party who claims that your company’s mistake caused harm may be able to file suit directly against you or the employee who committed the error. Professional liability insurance can shield you and your company’s employees from personal liability from professional mistakes. It is the most efficient way to protect your home, vehicles, and other valuable belongings that may otherwise be vulnerable to a settlement.
Find the Right Professional Liability Insurance
There are many different types of professional liability insurance. Finding the right one is imperative if you want to minimize the risk that your business faces. Mistakes are inevitable, but you don’t have to let a single error devastate your company’s finances. On the contrary, you can invest in a solid risk mitigation strategy that includes adequate insurance coverage and an error prevention plan. It is time to partner with an insurer to find the correct errors & omissions coverage.
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.
