Why small business owners need professional liability protection

Infographic transcript

Small business: big professional risk

• 40% of small business owners report they face professional related risk
• Yet, approximately 80% of small businesses who face these risks do not purchase professional liability coverage
• Of small companies sued, 73% said their business suffered because litigation was time consuming and 64% said because litigation was very expensive 

Four key professional liability risks

• Missed deadline: Your business is delayed in delivering products or services that causes financial loss to your client.
• Overlooked detail: Your business misses an important detail that results in your customer receiving an incorrect product and you face financial loss due to the oversight.
• Employee mistakes: Your employee makes a simple administrative or clerical error that could lead to a professional loss.
• Disputed advice: Your business offers consultation or advice to a client that they allege leads to financial harm. Professional liability coverage typically costs between $500 and $1,500 a year for a small business. 

You need professional liability coverage if you:

• Offer advice
• Provide skilled services
• Sell products that require technical training
• Design, recommend, install or test products

Professional liability coverage typical costs between $500 and $1,500 a year for a small business. 

Most lawyers charge between $350 and $800 an hour

Professionals that benefit from this protection:

• Advertising agencies
• Beauty salons and barbershops
• Business consultants
• Funeral directors 
• Graphic designers 
• Home inspectors
• Information technology (IT) consultants
• Interior decorators 
• Photographer or videographer
• Property managers
• Real estate agents and brokers
• Recruiters 
• Travel agents
• Wedding planner