What is Professional Liability Insurance?

Professional liability insurance is also called “errors and omissions,” because it’s designed to cover instances where your business commits an error or makes an omission. It covers the costs of a legal defense, settlements, and judgements from any client lawsuit that claims work was unsatisfactory. If your work causes financial damage to a customer, they may seek to recover those costs through legal methods.

What does Professional Liability Insurance Exclude?

Like all insurance policies, a professional liability insurance policy will have exclusions. However, that’s because a different type of policy would provide better protection.

Which Small Businesses Need Professional Liability Insurance?

While every small business owner should consider their risk exposure and potential need for professional liability insurance, there are some businesses and industries which are known to have a higher risk. It’s more likely that a client might sue over an error, or the government might pay closer attention to your activities. Businesses that provide services based upon specialized skills are particularly at risk. Clients hire you based upon the assumption that you have the skills to provide those services. While all humans make mistakes, clients generally don’t appreciate it when those mistakes cost them money.

5 Insurance Options for Your Business to think about

Name: Insurance Professional of Arizona
Address: 3521 E Brown Rd. #101, Mesa, AZ, 85213, United States
Telephone: +1 480-981-6338
Price range: $$

When you are starting a new business or already have a well-established business, insurance is something that you will need. It is best to get insurance sooner rather than later. This way you and your company will have peace of mind when something comes up. Getting insurance right away can save you the headache of dealing with expenses that can arise from accidents and other incidences. Different kinds of Business insurance in Arizona options are great to know, however, the right one is even better.

You may have done some research, or you may have no idea how insurance works, especially for businesses. This can be a whole, new, unexplored territory when it comes to insurance for your business. Luckily, we have a quick breakdown of some of the different kinds of insurances that are available for your Arizona-based business.

Your business may not need every insurance mentioned below, in fact, your business may not be a good fit for some of these options. You can move on to what is right for your business and what will be the best fit for your company now and in the long term.

Here are five different insurances that are available to business owners:

Data Breach Insurance –

This may not seem like the kind of insurance your company needs but if you work with customers or any data-sensitive information, this may be a perfect fit for your business. If you take a look at the news, you will frequently find stories about major companies and data breaches. This means that their customers’ sensitive information and even identity have been compromised.

When breaches do happen, it can be a nightmare for companies. It requires lawyers and a good defense team. It also means doing a lot of damage control with customers. If their information has been compromised, they will need to change their bank information, credit cards, and other data. In other words, compensation may be given to customers as a settlement for the damage that has been done.

You may have a great security team in place but you may not be able to prevent all breaches from happening. The best plan you can have to protect your business’ reputation and ensure your customer’s trust is to have data breach insurance. This will not only put your mind at ease but it will save you a lot of frustration and stress if a data breach does happen.

Commercial Insurance –

The second kind of business insurance in Arizona is Commercial insurance. This comes in many different forms and packages. The commercial insurance option is mainly meant to cover the business itself. This includes the ownership, employees, and products and services the business offers. There are a lot of options that commercial insurance falls under. You can have commercial auto insurance if you have company cars that you or your employees use. You can also have a broad commercial insurance package that covers the business itself and the ownership. This insurance option is great for a lot of different businesses because you can tailor it to your company’s needs.

There are also commercial insurance options for where your business is located. It seems a little odd to have your insurance company halfway across the country when you could easily have insurance that is in your home state. Let’s say you just moved to Arizona and you want to change to a local insurance company. You may search for different options and find that there are many insurance options in Arizona. Therefore, when looking for commercial insurance Arizona options, you want someone who is on your side and wants your business to succeed as much as you do.

Business Income Insurance –

The name of business income insurance does explain what this type of insurance does. It covers the business income of your company if it is disrupted by anything. Business income is easy to determine. The general operating expenses and the net income of the business is the answer. This insurance is perfect for any company that may suffer from extreme weather, has a physical location, or where there could be any general disruption of your operations.

When looking at this insurance you may hear the term period of restoration. This refers to the time where the company is restoring itself to run as normal. Do you have a physical store? Having a physical store you might have damage from a number of things. The time to rebuild and fix whatever is damaged is referred to as the period of restoration and your business income insurance will help your business maintain its regular income.

Liability Insurance –

Many businesses deal with customers on a daily. The risk involved with dealing with customers is certain. Liability insurance is a good option for a business if there are any claims made against them or if there is suing involved. This can protect the business from dealing with accusations while still trying to run a business. It can help cover costs of legal help and other costs that are covered within the insurance. Make sure to choose an insurance package that is right for your company.

Property Insurance –

Property insurance covers, as the name suggests, properties. This is a great option for you if your business relies on any kind of physical location. This may be an actual brick-and-mortar store or a piece of land that is rented out. Property insurance is different from business income insurance because it will help with the physical location and not the business income.

Take the physical store example. If there is water damage, property insurance will cover the cost to help rebuild the building. Some different types of insurance include: earthquakes, tornados, and even fire insurance are different options for your property.

Do these business insurances in Arizona options seem like a good fit for your business and its needs? In conclusion, give us a call today to find out more about what options and plans we have and how we can help your business grow while staying protected. Above all, give us a call to see how we can help you!

We’re here to help! Call us today.

480-981-6338