As a contractor, you may think that your general liability insurance policy is enough to cover all of your bases. However, this isn’t always the case. Depending on the type of work you do, you may need to consider getting professional liability coverage in addition to your basic policy. In this blog post, we will explore what professional liability coverage is and how it can benefit contractors. We will also touch on some common misconceptions about the coverage and dispel any myths that you may have heard.
What is professional liability coverage?
As a contractor, you are likely to face lawsuits alleging that you failed to complete a job or caused damage while working. Professional liability insurance, also called errors and omissions insurance, can help protect you from these types of claims.
This type of coverage generally pays for your legal defense costs and any damages that may be awarded in a lawsuit. It can also help cover the cost of settlements, which can save you time and money in the long run.
If you are a contractor, professional liability insurance should be an important part of your business insurance policy. Contact your agent or broker to learn more about this type of coverage and how it can protect your business.
Who needs professional liability coverage?
As a contractor, you may be held liable for damages caused by your work, even if the damages were beyond your control. Professional liability insurance can help protect you from financial damages caused by these types of claims.
There are a few different types of professional liability coverage available for contractors. The type of coverage you need will depend on the work you do and the contracts you have in place.
If you provide professional services to clients, it’s important to have some form of professional liability insurance in place. This type of coverage can help protect you from financial damages caused by claims of negligence or errors in your work.
If you’re a general contractor, you may need builder’s risk insurance in addition to professional liability insurance. Builder’s risk insurance can help protect you from financial losses due to damage to your project while it’s under construction.
Make sure you talk to your insurance agent about the right type of professional liability coverage for your business.
What does professional liability coverage protect against?
If you are a contractor, professional liability coverage (aka errors and omissions insurance) protects you from financial damages that may arise from your professional services. This type of insurance can help cover the cost of legal defense and any settlements or judgments that may be awarded against you.
Professional liability coverage is important for contractors because they can be held responsible for any mistakes or errors that they make while working on a project. This type of insurance can help them protect their business and finances if they are ever sued by a client.
How much does professional liability coverage cost?
There is no one-size-fits-all answer to the question of how much professional liability insurance costs. The price of your policy will depend on a number of factors, including the size and scope of your business, the industry you’re in, your claims history, and the coverage limits you select.
That said, we can give you some idea of what you can expect to pay for professional liability insurance. According to the Insurance Information Institute, the average cost of this type of policy is $500 per year. However, premiums can range from as little as $100 per year to more than $5,000 per year.
If you’re shopping for professional liability insurance, be sure to get quotes from a few different insurers. And remember, the lowest price isn’t always the best deal. Make sure you’re getting the coverage you need at a price you can afford.
Pascal Burke – help,s contractors assess their risks and choose the policy which covers the liabilities of the business and workers most proactively.
How to get professional liability coverage
There are a few things that contractors can do to get professional liability coverage. The first is to contact an insurance agent or broker who specializes in this type of coverage. They will be able to evaluate the contractor’s needs and find a policy that fits those needs.
Another option is to contact a professional liability insurer directly. These companies usually have online quoting tools that can give the contractor a good idea of what their premiums will be.
Once the contractor has found an insurer, they will need to fill out an application. This will include information about the contractor’s business, their experience, and the projects they have worked on in the past. The insurer will use this information to determine whether or not the contractor is a good risk and if they should offer coverage.
The last step is to pay the premium and wait for the policy to go into effect. The contractor should make sure to keep their policy up to date by renewing it each year and keeping track of any changes in their business or personal life that could affect their coverage.
It is a standard policy of PBIB to quote, using multiple carriers.
What are the benefits of having professional liability insurance coverage?
If you are a professional contractor, chances are you are aware of the importance of having professional liability insurance coverage. This type of insurance protects you from financial damages that may result from your wrongful acts or negligence while performing your professional duties.
While the cost of this coverage can be significant, the benefits far outweigh the costs. Here are some of the top benefits of having professional liability insurance coverage:
1. You will be protected from expensive legal fees in the event that you are sued for negligence or wrongful act.
2. Your insurance company will cover any damages that are awarded to the plaintiff, up to the limits of your policy.
3. In some cases, your insurance company may also provide legal defense for you if you are sued.
4. If you have to pay a settlement out of pocket, your professional liability insurance can reimburse you for those expenses.
5. Even if you are not found liable, the costs associated with defending yourself in a lawsuit can be significant. Having professional liability insurance coverage can help defray those costs.