Why small business owners need professional liability protection
Professionals today have a lot to worry about, but the fear of costly lawsuits doesn't have to be one of them. Professional liability, also known as errors and omissions, provides protection for defense costs and settlement payments for allegations that your work or advice was inadequate, contained errors, or failed to meet specifications. Learn more about professional liability coverage and how it gives small business owners added peace of mind.
Sources:
Court Statistics
U.S. Chamber of Commerce
Institute for Legal Reform
Forbes
U.S. Small Business Administration
National Federation of Independent Business
Insurance Journal
LC June 2018-269
Related resources
Why small business owners need professional liability protection
Professionals today have a lot to worry about, but the fear of costly lawsuits doesn't have to be one of them. Professional liability, also known as errors and omissions, provides protection for defense costs and settlement payments for allegations that your work or advice was inadequate, contained errors, or failed to meet specifications. Learn more about professional liability coverage and how it gives small business owners added peace of mind.
Sources:
Court Statistics
U.S. Chamber of Commerce
Institute for Legal Reform
Forbes
U.S. Small Business Administration
National Federation of Independent Business
Insurance Journal
LC June 2018-269
Related resources
Why small business owners need professional liability protection

Professionals today have a lot to worry about, but the fear of costly lawsuits doesn't have to be one of them. Professional liability, also known as errors and omissions, provides protection for defense costs and settlement payments for allegations that your work or advice was inadequate, contained errors, or failed to meet specifications. Learn more about professional liability coverage and how it gives small business owners added peace of mind.
Sources:
Court Statistics
U.S. Chamber of Commerce
Institute for Legal Reform
Forbes
U.S. Small Business Administration
National Federation of Independent Business
Insurance Journal
LC June 2018-269
- Infographic transcript
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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
Related resources
Why small business owners need professional liability protection

Professionals today have a lot to worry about, but the fear of costly lawsuits doesn't have to be one of them. Professional liability, also known as errors and omissions, provides protection for defense costs and settlement payments for allegations that your work or advice was inadequate, contained errors, or failed to meet specifications. Learn more about professional liability coverage and how it gives small business owners added peace of mind.
Sources:
Court Statistics
U.S. Chamber of Commerce
Institute for Legal Reform
Forbes
U.S. Small Business Administration
National Federation of Independent Business
Insurance Journal
LC June 2018-269