Professional Liability Insurance Coverage
Professional Liability Insurance â Covering You From Claims Against Professional Negligence
Professional indemnity insurance falls in the genre of liability insurance and is popularly known as “errors and omissions” or “malpractice” insurance. Professions that are advisory in nature are more prone to risks. Your client can claim against any financial or image damage caused due to mistake, negligence, omission, breach of contract, unintentional copyright violation on your part.
If you are contributing any written material, there may be claims for slander or defamation. Whether true or false, once the client claims for compensation, you have to bear the legal cost. The legal expenditure might be thousands of pounds. In such a situation, professional liability insurance helps a lot by safeguarding you from any financial loss.
Professional indemnity insurance comes into rescue only when a claim is made. No matter whether you win or loose in the legal battle, the insurance policy covers your legal costs. However, in many cases, insurance companies chose out-of-court settlement to help both parties from unnecessary legal hassles.
There are some professional indemnity policies that cover your negligence and errors from an earlier date of purchase. However, your mistakes need to be unintentional for this coverage. These policies can not safe guard you if you change your profession. You can opt for professional indemnity insurance policies with ‘run off’ cover for better protection. This cover safeguards you till additional three years if you are going to retire or taking a professional break. This coverage does not charge any extra payment and helps you if there is any late claim.
Earlier professional liability insurance was sought by legal and accountancy professionals only. However, with increased consumer awareness, risk level and number of judgments going in favour of clients, professionals from a wide array of industries are opting for this. Advent of internet has made buying professional liability insurance easier.
Cost of business Insurance in Metro Phoenix AZ?
We are still in the planning stages of forming our business. We are looking to start an LLC that provides unarmed security guards to various professional business buildings in the Metro Phoenix AZ area. We would like to know a ballpark figure – for planning reasons – of what it would cost to get Workers Comp. Ins. and General Liability Insurance with the coverage in the amount of $100,000 for each occurrence, and an aggregate total of at least $300,000.
Thank you.
First off, I would STRONGLY recommend higher limits than 100/300. I’m not even sure those limits would be available for your type of business. I would definitely recommend 1,000,000 / 2,000,000 limits for the General Liability. Think about it, if someone dies because your people failed to act, or acted negligently, is $100,000 going to be enough to pay off a grieving widow or some poor person’s family?
Security business are a high risk so your agent would need to approach a non-standard market which generally means a lot less competition. In your case, as a new venture, you’ll likely only be able to find one or two proposals to get started.
To give you even a ballpark, we would AT LEAST need to know how many employees you plan to have for the first year. Depending on the General Liability company, your premium will be based on either your estimated Gross Receipts or your estimated payroll. The Workers Compensation premium will be based on your payroll.
Good luck to you!