As Your Small Business Grows, So Do Your Risks

Let Professional Liability Insurance help protect you

The goal of almost all entrepreneurs is company growth. These small business owners are not the type to aim low; they set aggressive goals and work diligently toward them. If you count yourself among this group of go-getters your business is likely growing or on a solid path to increases in sales and clients.

But as your business grows, so does your risk.  More clients mean more potential for lawsuits stemming from differing views on scope of work, mistakes made by you or your staff, or actual service delivery errors.  And since you can be sued even if you haven’t made an error, even the most effective and efficient companies are at risk.

As an entrepreneur, you’re probably more risk-tolerant than most, but there’s never a reason to let preventable problems cloud your success.  That’s where professional liability insurance comes in.  Also referred to as errors and omissions coverage or E&O, this business insurance protects you from the risks faced in delivering professional services such as IT and technology, consulting, business advising, marketing planning, and real estate transactions.

Professional liability policies can cover many of the problems that result in potentially crippling costs – costs that could force you out of business – including alleged or actual negligence, libel or slander and copyright infringement, as well as the costs of defending such claims.  Some PL insurance coverage extends worldwide, includes coverage for staff, temporary staff, and independent contractors.  PL will be there to pay the cost of legal fees for covered claims whether a mistake has been made or not, as well as cover any damages, up to your policy’s limits.

Another thing to consider: As your business grows you’ll be exposed to bigger opportunities with larger clients, some of which may require you to have a professional liability policy.  It’d be a shame to lose a contract because you don’t have something you need regardless, wouldn’t it?

So how do you get E&O coverage for your growing business?  Many insurers offer professional liability coverage, so you need to find an insurance partner that operates similarly to your business, by being efficient and providing quick client response and flexible service options.  It’s often beneficial to buy directly from an insurance provider, as buying directly means working directly with the insurer.  Insurers like Hiscox have a team of licensed advisors focused on professional businesses like yours – meaning you work with a knowledgeable specialist who delivers recommendations tailored for your specific profession and needs.  Buying direct also often means saving money. The insurer’s expenses are lower and passed on to you, allowing you to get the right coverage at a competitive price.

If your entrepreneurial venture is primed for growth but doesn’t currently have professional liability coverage, what are you waiting for?  Get your quote today.

And don’t forget to watch the video What is Professional Liability Insurance? A 60-Second Guide over on Empower Me! Magazine.

Hiscox Small Business Insurance is underwritten by Hiscox Insurance Company Inc. (HICI), a Chicago-based insurance company. The contents of this article and the linked materials do not offer legal, business, or insurance advice related to the needs of any specific individual business. Claim scenarios are for illustrative purposes only and are subject to the terms and conditions of the policy in question. Please consult your professional advisor.

 

Guest Blogger:

Kevin Kerridge is the director of small business insurance for Hiscox, a company that provides customized business insurance for small business professionals such consultants, IT professionals, graphic designers, bookkeepers and many more.

 

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  1. Pingback: What is Professional Liability Insurance? A 60-Second Guide | Empower Me! Magazine

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