When it comes to professional liability insurance, most people think of the big three: medical professionals, lawyers, and accountants.
However, there are many other professionals who need miscellaneous professional liability insurance to protect them from potential claims.
This type of policy covers claims that can arise from any number of professional services, including but not limited to:
- Design services
- Technology services
- Marketing and advertising,
- And many more...
In this article (and the video below) we summarize everything you need to know about miscellaneous professional liability insurance...
What is Miscellaneous Professional Liability Insurance?
Miscellaneous professional liability insurance (also called misc professional liability insurance) is a type of insurance that protects businesses from claims that arise out of the rendering of, or failure to render professional services.
These claims can occur without warning, which is why it's so important to have the right miscellaneous professional liability policy in place.
Even if you're extremely careful and always do your best to provide quality services, mistakes can happen. If one of your clients suffers damages as a result of your work (or lack thereof), they may choose to file a claim against your business.
Without miscellaneous professional liability insurance, you could be on the hook for any damages that are awarded to the claimant, as well as any legal fees associated with defending yourself in court.
Even if the claim is ultimately found to be groundless, the costs of defending yourself can add up quickly. With miscellaneous professional liability insurance in place, your policy will help cover these costs, giving you one less thing to worry about.
5 Ways to Protect Against Miscellaneous Professional Liability Insurance Claims
Here are a few things you can do to protect your business from miscellaneous professional liability insurance claims...
1) Protection from costly errors
Clients can sue professional service providers for a variety of issues, including, but not limited to, errors in financial statements, errors in auditing activities, negligent tax filings or tax preparation, failure to detect embezzlement, and poor management advisory services.
Professional liability insurance can protect professional service providers from these errors and omissions, providing much-needed peace of mind and financial protection.
2) Opportunities to engage more prospects
More and more clients expect their professional service providers to carry the proper insurance. Without miscellaneous professional liability coverage, you may miss out on key opportunities, which can directly impact your bottom line.
3) Coverage for legal expenses
While you may take every necessary precaution to avoid errors and omissions, costly lawsuits can arise from just one mistake.
Miscellaneous professional liability insurance can reimburse policyholders for legal fees, court costs, administrative expenses, and any settlements or court judgments.
Because your clients won’t hesitate to take legal action if you fail to meet their expectations, financial protection is more important than ever.
4) Affordable coverage
While the pricing of a policy can differ depending on the insurer and a firm’s unique risks, miscellaneous professional liability insurance is often very affordable.
Many insurance policies cost just 1 percent of a professional service provider's firm’s annual revenue.
5) Risk management resources
As a benefit of the coverage, some policies provide a number of risk management services.
These services can help professional service firms proactively reduce their exposures. In addition, some insurers provide access to professional consultation on topics like ethics, malpractice avoidance, client relationships, and firm management.
READ NEXT: Best Professional Liability Insurance
The cost of miscellaneous professional liability insurance will vary depending on a number of factors, including the type of business you have and the services you provide.
However, policies typically start at around $500 per year. For most businesses, this is a relatively small price to pay for the peace of mind that comes with knowing you're protected from potential claims.
If you provide any type of professional service, miscellaneous professional liability insurance is an important part of your risk management strategy.
The point here is there is a whole package of insurance coverages that you need to at least consider in order to protect the sustainability and profitability of your business, miscellaneous professional liability insurance being a big part.
We can help.
If your current insurance professional has never addressed issues like this with you before, then I’d encourage you to reach out to us today.
- You can call or text us at 518.960.6600
- Click here to contact us via email.
I look forward to introducing you to a new way of viewing your insurance program.