Do You Need Professional Liability Insurance?

If you are a professional who gives advice or recommendations to clients, personal liability insurance is an important aspect of protecting yourself and your business. For example, dentists, accountants, technology professionals, internet freelancers, non-profit workers, and commercial business owners are all individuals who should consider purchasing personal liability insurance.

This is because these professions are purposely taking part in activities that are putting customers at risk of injury or damage. Although most licensed professionals execute their jobs without an issue, there are rare cases where problems occur. For these times, personal liability insurance is important.

Benefits of Personal Liability Insurance

There are a number of benefits to purchasing personal liability. Like other types of insurance, personal liability insurance helps protect your assets if you are at risk of being sued by a customer or client for negligence. A third party can sue you for negligence if the advice you offer them causes harm, injury, or financial loss.

In terms of coverage, personal liability insurance policies generally cover negligence, court costs, and previously performed services. The negligence aspect of the liability policy pays for all of the financial losses incurred from mistakes you allegedly made while conducting business. Similarly, the liability policy’s defense costs will cover your lawyers and court costs. One of the most unique benefits of personal liability insurance, though, is that a liability policy will insure your previous, current, and future work.

When to Purchase Personal Business Insurance

Besides the aforementioned professions, consider purchasing personal liability insurance if you are a beautician, personal trainer, career coach, business consultant, health counselor, therapist, real estate agent, landlord, or information technology professional.

While most corporations and large companies offer compulsory liability insurance for their employees, if you are working in any of these professions on a freelance or independent basis, you will have to purchase this type of insurance to minimize your public liability risk.
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