Professional Liability Insurance

Customized Professional Liability Insurance for Your Business

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Professional Liability Insurance Quotes Customized for You

Even the best business owner can inadvertently be negligent in their work. When that happens, Simply Business can help keep you protected with professional liability insurance.

Whether you’re an architect or a photographer, our professional liability insurance can be tailored to your business’s exact needs. We offer you the ability to choose among multiple insurance carriers that specialize in your industry, so you can pick and choose the exact coverage you want.

Plus, it can all be done online or over the phone, making it easy and convenient for you to get coverage.

What is Professional Liability Insurance?

Professional Liability insurance provides coverage in the event a customer claims that your professional services resulted in some kind of negligence. If your customer sues your business for mistakes related to your services, your professional liability insurance policy may cover any damages and legal costs that you might be ordered to pay as a result of that negligence.

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Do I Need Professional Liability Insurance?

You may need professional liability insurance if you’re in the business of giving advice or providing a service. For example, if you’re a tax accountant and you accidentally misplace the decimal point on a W2 form, this coverage can protect you if a customer gets audited and decides to sue you.

It’s a good idea to have professional liability coverage if you want to land bigger projects or government contracts. Your professional liability insurance policy can cover you against claims of negligence from your professional services, whether it actually happened or not. It’s a good idea to have it, even if your state doesn’t require it.

What Does Professional Liability Insurance Cover?

Professional liability insurance usually covers:

  • Negligence or alleged negligence
  • Legal defense costs
  • Claims involving libel and/or slander
  • Copyright infringement
  • Claims and damages
  • And more

How Does Professional Liability Insurance Work?

Let’s look at an example of how professional liability insurance works: A real estate agent is showing clients a home in a historic neighborhood. The real estate agent forgets to mention that the basement is prone to flooding, especially during the winter months. The new homeowners are furious to learn about the potential flooding problem after buying the home, so they decide to sue the agent, claiming negligence.

The real estate agent’s professional liability insurance can cover the costs associated with the lawsuit. The only out-of-pocket expense the real estate agent has is the policy deductible.

Is Professional Liability Insurance Required by Law?

Professional liability insurance is not required by law, but it’s strongly recommended for business owners who provide advice and services (like accountants, lawyers, appraisers, etc). Having professional liability insurance can also help you land bigger projects with customers who want to feel assured that they’re protected in case something goes wrong.

Why is Professional Liability Coverage Important?

Professional liability coverage can provide essential protection in case the worst happens. It gives you the peace of mind you need to focus on your business, plus it can make customers feel more confident about working with you.

Negligence can happen, even when you think you’ve done everything right. Professional liability insurance means that if a client sues you for negligence, you, your business, and even your family’s finances won’t be destroyed by any resulting lawsuits and claims.

Is Professional Liability Insurance Tax Deductible?

Your professional liability insurance premiums are tax deductible. The IRS considers your policy premium to be part of your allowable business expenses, which are deductible. However, you should ask for advice from a tax preparer or an accountant if you want to learn more about deducting your insurance premiums on your business’s income taxes.

Is Professional Liability Insurance Based on Payroll?

Your business’s payroll can definitely play a role in how much you pay for professional liability insurance. Think about it this way: The more employees you have, the greater the likelihood that an incident of negligence might occur on your watch.