Do I Need Professional Liability Insurance?

If you own your own business, you may be wondering whether you need professional liability insurance. The answer varies depending on your line of work.

Professional liability insurance (also known as E&O insurance or medical malpractice insurance) provides coverage for business owners that offer advice or professional services in the event that you give bad advice or fail to perform a service resulting in a client’s lost revenues. Professionals such as accountants, lawyers, physicians, and real estate agents would be required to carry this type of insurance policy as it protects you from your most common causes of loss.

It’s important to note that a professional liability insurance policy is a special type of coverage that is not included under general liability. If you currently have a general liability policy, the additional coverages afforded under professional liability insurance would need to be purchased separately.

Professional liability is often written on a claims-made basis; this means that your professional liability policy will only respond if the claim is made during the policy period for a loss occurring within the coverage period. So, if you have been doing business for a period of time, or you are transferring from one insurance company to another, you will want to make sure that the “retroactive date” on your new policy extends back to when you started the business. Furthermore, even if you are selling your business or moving on from the existing business for any reason, you will want to buy a “tail” on the insurance. Ideally, this will cover you during the statute of limitations period within your industry.

Professional Liability Insurance Examples:

  • You build a website for your client in West Chester, PA. Glitches in the site cause it to shut down for several days, resulting in lost revenue to your client. You can be held responsible for this lost revenue.
  • An architect draws blueprints for a building being constructed in Exton. Several months after the building is built, the roof caves in. The design of the custom roof turns out to be a poor one, leaving the architect liable.
  • While working on customer computers in Kennett Square, you forget to re-install the firewall, allowing a virus to access customer files which include personal information.

Risk Averse Insurance has been insuring Delco and the surrounding areas since 2015, providing expert service while offering affordable prices on workers’ compensation insurance. We want to partner with your small business and ensure that you’re getting the best possible coverage.

 

Call Risk Averse Insurance in Media, PA to discuss professional liability insurance for your small business.

Risk Averse Insurance is an independent insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.

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Don and Megan were extremely helpful and a pleasant to work with. Highly recommend. They went above and beyond to get me insured quickly and at a really good rate.
Jojo Anaya
Jojo Anaya
Our construction company recently switched over to Risk Averse Insurance. We moved all of our policies over to this company. Our agent, Don Blizzard, was amazing! He was upfront and explained everything to us so we understood what we were getting. He made the process very easy and the turn around was very fast! There were no issues! Not only did we get great deals, we got better coverage than we ever had. I would definitely recommend this company! They are the best!
Kelly Robb
Kelly Robb
I recently switched to this company this year for all my business insurances and couldn’t be happier. The service my agent Don Blizzard provides is amazing. I started recommending to all my colleagues and family. Definitely worth reaching out for quotes if you’re a business contractor. Thanks again team
Louis Litwin
Louis Litwin
Just had to file a big claim for a stolen vehicle full of all my professional equipment----the policy they wrote allowed me to get real value back for my stolen equipment so I can come back even stronger!! Big thanks to my agent Don Blizzard for doing such a great job!
Ed Sheridan
Ed Sheridan
Don Blizzard is my agent with Risk Averse and he is absolutely the best. He is quick to respond with any questions or concerns I may have, gets me my certs way faster than expected, and is great at explaining things in a way that a layman can understand. I highly recommend Don and Risk Averse Insurance.
Sean Carter
Sean Carter
Don is a great insurance guy he dose my personal and business insurance every time I call he answers and takes time to answer all my questions and guides me in the right steps
Blaine Kunselman
Blaine Kunselman
I have been using them for over 5 years now and I'm very happy with the service; they always do the best to get me the best and current up-to-date deals and excellent to deal with. I recommend.
Chauncey Brown Jr.
Chauncey Brown Jr.
Ive worked with Don for the last few year's. When I started my buisness I knew I needed help and didn't know where to start.I knew I needed an absolute beast of an agent and every other owner/ operator I talked too said if "You don't have Don Blizzard as an agent then you dont have the best agent. "He took a chance and helped me grow my buisness to where its at today. Riskaverse is the absolute best and since starting my buisness all my insurance is through them with help from Don Blizzard. He has a way to explain it to me where I understand my coverage and exposure and the commercial side including Meghan are the absolute best at getting COI'S sent to potential clients within minutes of requesting the copy.Hands down I only go where Don goes and I know whatever policies are written and where my coverage goes my loyalty will always lay with Don.He took a chance and grew with me and I'm forever grateful to all the staff at RiskAverse for being family and buisness friendly and not looking at me as a number or a client but actually caring and finding us the best for which suits our needs.#TeamDonBlizzard #TeamRiskAverse#TeamMegan
James LeBoon
James LeBoon
I work with Don. He has helped lots of my family and friends for their business and personal insurance. He is super responsive, honest, and hardworking to make sure you are fully taken care of in every aspect of your policy. He cares a great deal about each unique situation. I am fully confident anytime I refer Don.
Molly Eckman
Molly Eckman
Anytime I’ve needed assistance, the staff has always been accommodating. I have, and will continue to refer people here.
Allison Parasink
Allison Parasink
The best I've ever used. Don and the team make u feel protected and being able to lay your head on your pillow at night knowing you are protected is worth more than gold.
Dolans Bar
Dolans Bar
Don and his team have been great to work with and always very accessible which is important when dealing with the stress of getting your insurance set up and doing it right. Highly recommend!
Ryan Callahan
Ryan Callahan
I had the best experience. Don helped me with both auto and homeowners insurance in getting us the best price with great service. Highly recommend!
Gloria McAllister
Gloria McAllister
Fred Burns is the absolute best! Highly recommend!
joanne kelly
joanne kelly
Highly recommend!
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Jennifer McGonagle
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