Own a Business? Here’s What You Need to Know About Professional Liability Insurance.

Business owners, and their assets, are exposed to a variety of liabilities from slip & falls, product liability, cyber liability, employment practices liability to directors & officers liability and professional errors and omissions. When it comes to choosing business insurance, most business owners find it difficult to find advice they can trust on what is a must have and what may be an “optional coverage” for the type of work they do.

Last month we talked about all small businesses needing general liability insurance – the very basic liability coverage against bodily injury, property damage and the potential resulting lawsuits.

While all business owners need to have an asset protection plan in place designed around their specific situation, for most, insurance needs extend beyond basic liability coverage, requiring specific protection.

General liability insurance policies do not offer protection against claims resulting from the providing of professional services. This exposure to professional “errors and omissions” is why professionals who have expertise and give advice in a specific area need Professional Liability Insurance.

Professional Liability Insurance used to be limited to just a few professions such as accountants, lawyers and physicians. Today, there is virtually no limit to what type of business can be sued for making a mistake or an error in judgement. Any business from a contractor to an auto repair shop has this type of exposure, and the results of a lawsuit … or even just the defense costs, could be devastating.

Per Investopedia: Professional Liability Insurance is especially important for businesses like IT/technology consultants, business consultants and marketing consultants for whom incorrect advice or a failure to perform professional services could lead to a lawsuit.

As a business owner, you may be involved in highly important and complex projects that your clients may not fully comprehend, and be at risk of being sued even if you haven’t made a mistake. Professional Liability Insurance can cover legal fees, protecting you and your business from potentially crippling costs.


It is a specialty coverage that is not typically provided under homeowners endorsements, in-home business policies or business-owners’ policies, and usually only covers claims made during the policy period.

At Ross Insurance Agency, we do our best to protect your dreams, efforts, and assets. Our knowledgeable and dedicated team is here to provide you with a peace of mind – by making sure you understand your insurance program, and avoid unpleasant surprises.

Ross Insurance Agency’s Independent Agents are committed to finding the level of small business insurance coverage you want at the lowest possible price.

Contact us today to learn more about professional liability insurance, and how we can tailor the exact business insurance and personal policy you need.