WASHINGTON PARK CHAMBER OF COMMERCE: How to Insure Your Business Against a Professional Liability Lawsuit
Washington Park Chamber of Commerce issued the following announcement on May 23.
Professional liability insurance can help protect your small business by helping pay the cost of defending against lawsuits.
When least expected, a small business owner may be subjected to a professional liability lawsuit. These suits may claim that you’ve been negligent or made an error or omission while performing your services. Professional liability insurance can help you and your company pay the cost of defending against such lawsuits or the judgments that may result.
What is Professional Liability Insurance?
You never know when an unhappy client might file a lawsuit claiming you’ve been negligent or made an error or omission while performing your professional services. Fortunately, you can minimize financial hardship and help protect your future with a professional liability policy designed to help meet the needs of your industry and your particular business.
Errors and Omissions Liability
Mistakes happen. But even an innocent error on your part could lead to a client bringing a lawsuit against you for negligence. An errors and omissions liability policy can help you and your company pay for legal judgments or settlements. It also covers defense costs, which can be substantial even if you’re not found liable.
Employment Practices Liability Insurance
If you run a business, you face a risk of being sued by an employee or applicant for discrimination, wrongful termination, or sexual harassment. Damages can include compensatory awards, not just lost wages — and these allegations aren’t covered by most general liability policies. Employment practices liability insurance can help protect you and your business in the event of wrongful employment practice claims.
Not-for-Profit Organization Liability
Nonprofits aren’t immune from liability, harassment, discrimination, or wrongful termination lawsuits. Even if the court decides in your favor, you could incur a substantial legal defense bill. A not-for-profit organization liability policy, which includes employment practices liability insurance, can help protect your organization from these claims. It also covers your nonprofit’s directors, trustees, officers, employees, committee members, and volunteers.
To learn more about professional liability protection for your small business, contact a State Farm agent.
Original source can be found here.
Source: Washington Park Chamber of Commerce