Professional Liability Business Insurance

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What is Professional Liability Insurance?

Professional Liability Insurance covers you during those not-so-cool moments where you’ve either made a mistake or your client claims compensation for errors or even negligence in the services or advice that you provided.

Who Needs Professional Liability Insurance?

Unfortunately, we live in a world in which lawsuits have become a daily occurrence. 43% of small businesses report having been threatened with or involved in a lawsuit, and on a yearly basis, small businesses pay $35.6 million out-of-pocket to settle claims made against them.

This means that Professional liability insurance is a particularly crucial investment for sole proprietors and small business owners alike. Relative to larger businesses, who can typically cover the costs of representation, small businesses and sole proprietors are more likely to settle a lawsuit rather than see it through to court.

Professional liability insurance will help your business address many of the substantial costs that result from claims being made against your business.

What Does Professional Liability Cover?

Errors + Omissions
Professional Liability insurance protects individuals when they fail to perform essential services, give the wrong or inaccurate advice, or make a professional mistake. These errors and omissions can be actual or perceived—and that’s where Professional Liability insurance proves particularly valuable.

A client can sue you even if you didn’t make a mistake, and your defense costs—finding a lawyer, going through arbitration, taking time off work to tend to the suit—all add up. By investing in a Professional Liability insurance policy for your business, you won’t have to cover the costs of this kind of litigation out-of-pocket.

Thimble provides Professional Liability/Errors + Omissions coverage to over a dozen popular activities and professions.

What’s Covered?

  • Alleged or actual negligence
  • Defense costs
  • Personal injury
  • Temporary staff and independent contractors
  • Claims and damages

What’s Not Covered?

  • Bodily injury or property damage
  • Fraudulent acts
  • Employment matters
  • False advertising
  • Patents and trade secrets
  • Personally identifiable information
  • Other services

Who is Professional Liability Insurance For?

Covered Activities:

  • AV Installation
  • Car AV Installation
  • Classroom Instruction
  • Computer Programming
  • Computer Repair
  • Consultants (Not including Financial Advisors, Lawyers, Actuaries, and other Licensed Professionals)
  • Creative Directors
  • Graphic Designers
  • House Sitting
  • Interior Decorating
  • IT Consultant
  • Personal Shoppers
  • Photography & Video Services
  • Printing
  • Sound Recordists
  • Speakers
  • Web Design
  • Web Site Developer
  • Writers

Excluded Activities:

  • Health care professionals
  • Pharmacists
  • Educators / Teachers
  • Lawyers
  • Stockbrokers
  • Financial Advisors
  • Actuaries

How Much Does Professional Liability Cost?

The cost of your Professional Liability insurance coverage will vary based on a number of factors, most notably your industry and your ZIP Code.

Certain industries are more vulnerable to Professional Liability claims. If you work in one of these industries, you may expect higher premiums than businesses in other industries. Some insurance providers will also provide specific coverage relevant to that particular industry, such as protecting realtors if they fail to inform a client of asbestos.

Your ZIP Code also affects the cost of your insurance policy, as premiums can vary significantly from state to state or even between rural and metropolitan areas in one geographic region.

What’s The Difference Between Professional Liability Insurance and General Liability Insurance?

Glad you asked.

Examples of Professional Liability Coverage

Here are a few examples to illustrate the risks that Professional Liability insurance can protect against.

HR Consultant
Your staffing agency routinely performs background checks as part of your recruiting services, but one of your employees fails to perform a background check on an employee, who, upon being hired, ends up stealing from the company. Your client blames you and sues for damages.

Graphic Designer
You have been contracted to design a website for a client, and in the process of developing the site, failed to use password protection and left their website vulnerable to hackers. The client sues you for damage incurred due to a breach of client data.

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