The cost of defending yourself in court can be huge. A professional liability policy will cover these costs in the event of such a claim, which may otherwise financially cripple your business.
Despite your expertise, knowledge and best intentions, the reality is that not all projects are error-free, and eventually a mistake or misjudgment is bound to occur. Even the smallest error can have serious consequences.
Cover Your Costs
If a client believes damages are due to a mistake on your part they can sue your company. It is important to protect yourself against this potentially devastating liability. A professional liability policy will cover the cost of defending you or your company in court, not to mention the restitution costs if you’re found at fault (up to the policy coverage limit).
These policies are known as “claims-made” policies. This means that coverage is triggered when a claim is filed and you report it to the insurance company, since it is often hard to identify when the alleged error or omission originally occurred.