Professional Liability Insurance in Florida - How Much is it?
If you are working as a professional in Florida whose work involves giving guidance or advice to other people on a daily or regular basis, you must get yourself an insurance for professional liability because other types of insurances such as general liability insurance or business insurance will not provide protection for professional liability. Getting an insurance professional liability policy is necessary if your small business in Florida has a team of professionals that offer professional services.
Having a professional liability insurance policy can protect your business and assets if you get sued by clients as you offer your professional services, such as giving advice. Professional liability insurance is also known as errors and omissions or E&O in the US and is also called professional indemnity insurance.
What is Professional Liability Insurance?
Professional liability insurance is designed to offer protection for those who provide professional services due to the client’s damage because of the professional advice you gave. This kind of liability insurance covers professional liability if a professional makes a mistake and protects you from lawsuits and claims made by a client against you and helps protect your personal assets and your business’s reputation and saves you from financial losses.
In this state, professional liability insurance provides coverage for defense costs, including court cost and legal defense, and negligence, which involves giving faulty advice or a mistake from your end or failing to offer your service during the contract period. This insurance policy also covers past services but only for a certain time frame and also includes the mistakes made by your employed independent contractors or temporary staff. Civil litigation is part of this coverage as well, which means that though you will not be imprisoned, punitive damage may be given to the one who sued you, and this can be very costly on your part.
This kind of insurance professional liability coverage does not include property damage, bodily injury, illnesses, or work-related injuries and data breach. To get coverage for these, you would need to get a separate policy, such as general liability insurance.
Who Needs a Liability Insurance Professional Policy?
Getting professional liability insurance offers protection against clients’ claims and lawsuits and can save you from financial losses. Any type of company, whether a big one or small business, can be sued for as long as you provide professional service or advice, but you most especially need professional liability insurance if you are a consultant, an accountant, an insurance professional, an engineer, an advisor, a graphic designer, a real estate broker or a real estate agent, cosmetologist, beautician, etc.
Officers and directors of big companies also need to have a professional liability insurance policy. But the ones who are at high risk of getting sued for claims or lawsuits are the medical practitioners, most especially the doctors, so they are the ones who are required to purchase a liability insurance professional coverage.
To save your business from claims or lawsuits, there are ways to avoid them, and this includes not making any inappropriate questions or statements, protecting your client’s data because losing them can mean grave liability claims, and always have an experienced lawyer whom you can consult for advice in case claims and lawsuits are made against you.
Having errors and omissions coverage is vital because it is not part of commercial general liability insurance. When you have a liability policy, the amount of your coverage, as well as the limits of your claim, are essential factors as well. Getting this type of insurance coverage is highly necessary if you need to sign a contract that will let you carry some coverage or provide advice and professional services regularly.
Clients can sue you for whatever reason, usually due to negligence. If their expectations are not met, even if you have solid proof, claims can be made, which is why you need to protect yourself by purchasing professional liability insurance.
Why Do You Need Professional Liability Insurers?
Reaching out to a professional liability insurance underwriter is essential because it can help you find your business’s best coverage policy with the right budget. They can make your business insurance and liability insurance shopping very easy and convenient and save you from all the hassles while offering a lower professional liability insurance cost. These insurance agents can help you look for the best insurance coverage package that matches your budget and needs.
It is also important that the insurance agent you deal with is genuine about helping you out so they can offer ongoing advice and support to you. They can also lead you to get discounts if you buy more than one product from their company, this way, you can get some savings on your premiums.
What To Look For When Getting a Professional Liability Insurance Policy?
You need to consider some factors when getting a professional liability insurance policy, and it includes understanding the sub-limits, which places a smaller limitation around the aggregate limit of a legal defense. When you are aware of this, you can opt to choose a flexible coverage. Another thing to consider is the number of your deductibles, which will depend on your risks based on your business type and exposure. It is important to know that having low deductibles also mean higher premiums, but in the event of claims, shelling out your own money will also be not much unlike when you have higher deductibles. You have lower premiums, it will be more costly for you when claims are made.
Checking the cancellation policy of an insurance company is also something you need to take a look at because your company’s needs may change anytime. You may have to adjust your coverage, so having the flexibility of canceling your policy is important. It would be best if your insurance company does not have an additional fee for this option.
In Florida, there are two kinds of policies that come with professional liability insurance, and these are:
The right to defend
Which is also called as the reimbursement. With this coverage, the insurance company is not obligated to respond to the claims made against you, and they will have a say about the amount of coverage to give based on the details provided against you.
Duty to defend
The insurance company is obliged to give you the coverage within your policy.
How Much Does a Professional Liability Insurance Cost?
The amount of professional liability insurance varies based on different factors such as your claims history, the size of your company, the type of industry you are in, the activities and services you offer, and the number of deductibles and limits you choose. But typically, premiums for professional liability insurance begin at around $270 for the entire year, and the limits can be about $250,000 to around $2 Million.
To get a quote for your small business’s professional liability insurance, be prepared to discuss some business details such as the services you offer and the risk management practices that you employ. The latter is asked so your insurance agent can offer you the best rate. Other documents may also be required when getting professional liability insurance, such as your employees’ training incentives, contracts, documentation process, past professional liability insurance coverage, quality control procedures, etc.
Clients can easily sue you for negligence, and defense costs can be very expensive that can harm your finances. Because of this, you need to protect yourself by purchasing professional liability insurance along with general liability insurance to get further protection. Having professional liability insurance is certainly worth having, especially when you give people advice every day because you never know when mistakes can happen that can lead to lawsuits and cost you a lot of money.
Not having professional liability insurance is not a wise thing to do because you are not giving yourself, your business, your other assets, and your company’s reputation some type of protection.
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