Running a business or offering professional services comes with plenty of rewards, but it also comes with plenty of risks. Sure, you may be an expert in your field, but let’s face it — mistakes happen. And when they do, they can cost you more than just money! If you don’t have professional liability insurance, you’re leaving yourself open to some serious risks. Let’s talk about five big ones.
1). Costly Lawsuits
Ah, the L-word. It’s a word that every business owner hopes they’ll never have to hear or utter. But unfortunately, lawsuits happen more often than you’d think, and the aftermath is never pretty.
Let’s say a client claims your advice led to financial losses. Suddenly, you’re hit with a lawsuit demanding thousands (or even millions) of dollars in damages. Legal fees alone can drain your savings, not to mention the settlement or judgment if you lose. Professional liability insurance can step in to cover these costs (so you don’t have to).
2). Your Reputation Is on the Line
A lawsuit isn’t just a financial burden; it’s a reputational one too. Even unfounded claims can damage your credibility and make potential clients think twice about hiring you. Professional liability insurance often includes coverage for PR efforts to help repair your reputation if a claim goes public.
3). Contract Requirements Could Exclude You
Many clients, especially large organizations, require contractors and service providers to carry professional liability insurance. If you don’t have it, you might miss out on lucrative opportunities simply because you don’t meet their standards. PLI is often a ticket to landing bigger, better contracts.
4). Human Error Happens
Let’s be real: nobody’s perfect. Maybe you overlooked a critical detail, missed a deadline, or miscalculated something. Even small mistakes can lead to big financial losses for your clients—and they might expect you to cover the cost. Professional liability insurance can protect you from bearing the full brunt of those mistakes, covering claims that arise from errors or omissions.
5). Claims Can Haunt You Long After the Job Is Done
Here’s something many people don’t realize: you can be sued for work you completed months or even years ago! Without professional liability insurance, you’re on your own for any claims that arise after you’ve wrapped up a project. A good policy can include an extended reporting period to cover those situations.
Don’t Leave Your Business Vulnerable
At Avalue Insurance, we understand the unique challenges professionals face, and we’re here to help you find the coverage that fits your needs and budget. Our team of experts will walk you through the process, answer your questions, and ensure you’re protected against the unexpected.
Don’t let one mistake or misunderstanding derail your hard work. Contact Avalue Insurance today to discuss your professional liability insurance options! Give us a call at 303-773-3332, info@avalueinsurance.com, or request a quote right here online!
