Professional Liability: What is that for, and why do I need it?
Simply put, Professional Liability is errors or omissions coverage. It is based on you and follows you no matter what company or agency you work for. It is coverage that protects you if a mistake is made in your professional services.
What is it for?
It’s for protection. Just like home security systems, Professional Liability insurance offers peace of mind. If uncovered, and someone files a lawsuit against your work (i.e. a student fails a class and blames your “poor” interpreting skills), they would come after you personally. A disgruntled employee that was “let go” looking to place blame could place it on you. We are all human and do our best in our profession, but mistakes do happen. If a client believes they have suffered a loss due to your mistakes, they can sue you.
Why do I need it?
Not only does it offer you protection but as an independent contractor many agencies require it if you want to work for them. Typically, they cannot cover you because you are not an employee. In order to maintain your standings as an independent contractor you must obtain your own policy and, in this day and age, one must take the appropriate steps to protect themselves.
Costs and Coverage?
Coverage amounts range, but typically rates average to be about $8-$10/month, or $100-$120/year. Depending on the company, coverage can include limits up to $1.3 million, legal representation, HIPAA coverage, and more. Professional Liability coverage can be acquired through companies like The Hartford, Proliability powered by Mercer, and others.
Overall, Professional Liability is coverage for your own protection against any errors or omissions that may happen in your work as an independent contractor. It is required by many but it’s also smart business to protect yourself and your work.
As always, we are here to help. Please reach out with any questions, comments, or concerns. For more coverage details please check out the links below.
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