A mere mention of negligence or breach can land your business in court. You will find your firm facing an expensive lawsuit and a waste of valuable time. As a professional service business, you are primarily at the receiving end of anything that goes wrong with your service.
As a lawyer, medical doctor, pharmacist, consultant, insurance advisor, and accountant, you are primarily vulnerable to lawsuits. The dilemma about being sued due to errors, neglect, or breach is that the lawsuit will still drain your business of scarce resources, whether you are to be blamed or not.
In this piece, we’ll identify how to protect your professional business from issues arising from errors, neglect, and breach. There are three policies we’ll recommend on how to protect your business;
1. Professional Liability Insurance
Also known as the Errors and Omissions Insurance, which covers; missed deadlines, work mistakes and oversight, and undelivered services. This coverage will ensure that the cost of legal defense, settlements, and judgments is covered. These policies may protect and defend you from claims that are not valid as well.
That’s why clients often request proof of professional liability insurance before going into a contract with your business.
2. Cyber Liability Insurance
A breach of trust can damage your firm’s credibility, continuity, and profitability. More than ever before, your professional business is at the risk of a cyberattack. According to Purple Sec, the global average total cost of data breaches has been rising in the last ten years.
This coverage will pay for costs of the breach investigation, cyber extortion payments, regulatory fines, and penalties, etc.
3. General Liability Insurance
Aside from professional negligence and data breaches, numerous negligence can lead to lawsuits. This is why you should have a general liability insurance policy in place to shield your business from the costs of lawsuits.
You can find your business being sued due to defamation, copyright infringements, customer property damage, and others.
As a professional service business, you cannot downplay the importance of being protected against errors, neglect, and breach. With the several risks you are exposed to as a business, now is the time to seek expert advice on protecting your business.
Reach out to us at Tillman Insurance Advisors; we have an understanding of the risks professional service businesses are exposed to and how you can stay protected.