What Are the Costs of Going Without Professional Liability Insurance?
Commonly known as Errors & Omissions, Professional Liability Insurance protects your professional advice-giving and service-providing clients from bearing the full costs of defending themselves against a negligence claim made by their customers, and damages awarded in such a civil lawsuit. Although you know how essential it is for these professionals to carry this type of insurance, your clients and potential clients are not always aware of how Professional Liability benefits them, or they may think they simply don’t need it. This gives you the opportunity to educate and inform them. It’s important for them to know what the costs of going without professional liability insurance are.
Not only does professional liability protect against claims made by customers, it is also required in many states. In other states, it’s not required, but a professional can still face legal ramifications, fees, or job loss if they don’t inform their own clients that they don’t carry insurance. For example, June of 2013 after allegedly mishandling funds, an attorney licensed in Ohio had his license suspended for 24 months because he failed to notify a client he did not carry professional liability insurance.
Professional Liability Insurance is for your client’s own protection. Without it, their business will have to cover the costs of a successful litigation, including attorney fees and the costs of defending themselves and their business in a lawsuit. This insurance of course does not make them less likely to be sued, however it helps them to be more prepared if a lawsuit is brought against them.
PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth and breadth of knowledge to help our agency partners secure the best quality coverage for their clients in various industries. Please contact us today for more information at (855) 403-5982.