Every business wants to provide expert services and wonderful products to their clients. After all, the satisfied client is one who will likely help the business grow in the future. The company that puts its clients first most is probably more likely to be the most successful.
However, mistakes can happen in any business. When they do, they could cause harm to clients, who in turn could blame the company. Clients who experience losses because of a business’s services might expect compensation. In cases like these, your commercial insurance might come in handy. You might find yourself tapping into a special protection called professional liability insurance.
What is Professional Liability Insurance?
Whenever you offer your clients professional services, they expect professional results. Failing to achieve these results might lead to financial harm for your clients. Let’s take a look at an example.
It is tax season, so let’s assume you are a certified public accountant. While filing the taxes of a client with multiple deductions and items to declare, you make a mistake. Tax policy, after all, might prove complicated. This mistake winds up costing the client money to the IRS. That’s a loss that should not have occurred, but your actions caused it. The client might feel a need for the company to make up for the losses.
In such situations, professional liability insurance can assist the affected businesses. It might help the business pay for the losses their clients experience at their hands.
Who Can Professional Liability Insurance Help?
As a result of mistakes like the one above, the client might expect you or your company to make up for the mistake. Though this was an innocent mistake, it was still harmful to the client, and was still your fault. Therefore, the client might have grounds to sue the firm. Usually, your firm has an obligation to step up and make the decision right. Your professional liability insurance can usually help cover losses resulting from negligent services, mistakes and dissatisfied clients.
Ask your agent if professional liability insurance can be a benefit to your company. It might help you provide a settlement for affected clients or cover legal fees. Often, regardless of whether the mistake is a true or false allegation, this coverage can help. Generally, this coverage can extend to multiple professional service providers. These may include accountants, attorneys, bankers and other professional organizations.
So, if you're ready to get professional liability insurance, talk to your agent today at 888.512.8878. They can help you determine how much coverage you need, and tailor it to your business.