Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Why do Professional and Technical Services need insurance?
Businesses that fall under this industry consist of employees that provide services such as appraisals, marine surveying, arbitration and conciliation services, patent broker services, commodity inspection, pipeline or power line inspection, consumer credit counseling, weather forecasting, and handwriting analysis.
Your business needs insurance as it protects your business and even your personal assets from spending out-of-pocket expenses when a lawsuit, medical expenses, property damage, and other related risks happen. The insurance will pay for the costs of medical expenses, property damage repair or replacement, lawsuits, and other covered expenses.
What risks do Professional and Technical Services face?
Professional and technical services face a lot of risks, below are some examples:
The service you provided is deemed sub-par by one of your clients. This causes your client to file a professional liability claim against your business.
Your network infrastructure has been hacked. Your private information including your customers' information has been stolen by the hackers and used for their own personal gain.
Your employee gets injured while conducting routine maintenance on one of your clients' sites.
How much does insurance for Professional and Technical Services cost?
There is no fixed cost of insurance for professional and technical services as the cost is based on various criteria like the size of the business, the coverage required, the number of employees, and other related criteria. Without taking these into account, below is the average cost of insurance for your business:
General Liability insurance costs $500 in annual premiums. Workers Compensation costs $1200 in annual premiums. Professional Liability insurance costs $900 in annual premiums.