Let’s face it: your clients come to you for your expertise. If they could offer themselves the same quality of craftsmanship, they would. Because they cannot, they rely on your extensive experience and knowledge in your particular industry to help deliver successful products and decisions for them. They essentially put their businesses in your hands. When you make an inevitable mistake or omit a detail that causes them financial loss, they will look to you to take responsibility. This is where professional liability insurance has you covered.

General liability insurance policies usually only cover personal injuries or property damage for which you or your company are held responsible. Professional liability insurance policies take it a step further by offering coverage for mistakes and errors made by you or someone at your company.

For example, if your end-product doesn’t conform to pre-determined, contractual deliverables, you can be held liable for not providing what you said you would. Additionally, if you misrepresented yourself or your capabilities or offered poor advice to clients, a professional liability insurance policy can kick in and offer coverage for any lawsuits against you.

The main reason insurance is so crucial is because you really never know when an accident might take place that results in a legal claim against you from one of your clients or another person who somehow suffered harm in association with your business. You can think of personal liability insurance as your safety net, there to catch you in case any such legal claim ever becomes a reality.