What Causes Professional Liability Insurance Claims?
Small businesses of all kinds are sued every year over mistakes made. These could be intentional or, in most cases, unintentional. In fact, the U.S. Chamber Institute for Legal Reform reported that 43 percent of small business owners were involved or threatened with a lawsuit back in 2013. These lawsuits could cost small businesses upwards of $100,000 in litigation, a number that doesn’t even include the potential cost for reputational damages.
Doctors, lawyers, and accountants are especially targeted for these kinds of lawsuits given the sensitivity of their daily tasks. One small overlook or misstep and it could sink them. And while having regional coverage, such as professional liability insurance CT, is important, the cost in total could possibly end a business or law office altogether. Here are a few examples of what causes professional liability insurance claims.
Business Partners
Professional liability insurance can also play a role in protecting small businesses or law practices, for example, when a business partner performs underwhelming work. This could be something as simple as making defamatory comments about how business is being done within an office.
Courts can reject the argument that one business partner only owes a duty to their clients, not their other half of the operation. Statements, for instance, can be found within the scope of professional services. While this may seem like a rare case, it does cause a need to pay out damages, which can be covered by professional liability insurance.
Negligent Work
Probably the most common type of risk that professional liability insurance CT covers, negligence is not immune to any kind of small business. Whether it’s an engineer or architect who made a mistake on their plans for a new building or an accountant who missed something on a tax filing, putting a client’s financials in limbo, negligence can be costly.
Those working in a professional that provides advice to clients or provides them a service can be held responsible if something goes wrong or a project is completed with gaps or errors. If the expectations of the client/customer were not met, they can turn around and sue.
Administrative Errors
Professional liability insurance CT can offer coverage for mistakes over administrative and clerical errors made by professionals, including mistakes made by employees of an office. An example of this can be misplacing lab reports out of a doctor’s office or failing to show lab results to the doctor.
Most professional services usually involve clerical duties that can lead to liability. Even if an administrative assistant is guilty of making the mistake, the responsibility rests on the shoulders of the professional in question.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm
Tags: business insurance, Professional Liability, Professional Liability Claims, Professional Liability Insurance, Professional Liability Insurance CT