Professional Limited Liability Company (PLLC)

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What Is a Professional Limited Liability Company?

Starting a new business can be an exciting journey. You are a licensed professional, and you are ready to branch out on your own and help clients with your expertise. Unfortunately, starting a business can also be a very stressful situation when it comes to getting started. You need to form an entity, make sure you adhere to your state laws, hire employees if required, and purchase the proper insurance policies. The first step in starting any business, licensed professional or not, is to form a business entity.

When it comes to forming a business entity, there are many options available from Limited Liability Company, to Partnership, to Corporation. Many business owners choose to form an LLC due to the limited liability on themselves, as well as the tax implications. Unfortunately, many states do not allow licensed professionals to form an LLC, so therefore the Professional Limited Liability Company, or PLLC, was established. Licensed professionals, such as doctors, lawyers, attorneys, counselors, and consultants can still get the same benefits of an LLC by forming a PLLC. The main difference to be aware of is that while an LLC can shield an individual from lawsuits, a PLLC cannot shield a licensed professional from a malpractice lawsuit.

What Is a Professional Service?

A professional service is an occupation which requires the expert to have a license in their field. Some of these include medical professionals, law firms like lawyers and attorneys, architects, consultants, and many other professions.

What Coverages Does a Professional Limited Liability Company Need?

Insurance coverage is a necessity in any industry, but even more so for the Professional Services Liability Companies. The following is coverage that each business owner should consider.

  • General Liability - If you are having any clients or third parties come to your premises, General Liability insurance is a must. General Liability will cover bodily injury and property damage, think slips and falls, or damaging a customers property while in your care, custody, and control.
  • Professional Liability - The cream of the crop, Professional Liability insurance, otherwise known as Errors and Omissions, is going to cover you for mistakes made, or perceived, during your work. Most Professional Liability policies will be tailored to your specific business to provide the best protection.
  • Commercial Property insurance - If you own, rent, or conduct business in your home, you will need to have the right Property insurance in place. Even if you don't own a building, you will need to insure your business personal property. Another coverage usually available with a Property insurance policy is Business Interruption, which will help you continue to pay your ordinary operating expenses, should you not be able to run your business during a covered claim. Often you can purchase a Business Owners Policy, or BOP, to cover both the Property and General Liability insurances and save some money by bundling.
  • Workers Compensation - If you have employees you should carry Workers Compensation insurance. There is always a potential risk for injury on the job, and if you don't carry Workers Compensation, you can be sued, or even fined by the state depending on the laws.

There are some other insurance policies that you may need depending on your risks. These include Commercial Auto insurance, Excess or Umbrella insurance, Cyber Liability insurance, and Employment Practices Liability insurance. CoverWallet's experienced team of advisors can work with you to determine which coverages and policies are best for you and your business.

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How Much Is Insurance for a Professional Limited Liability Company?

Because Professional Limited Liability Company is such a broad term, and insurance needs can vary, the cost will differ widely. The liability risk is going to significantly impact the price, as well as the number of employees, your experience, and even where you live. Some other factors that will influence pricing for insurance are past claims history, coverage amounts, and deductibles. It is best to talk with our trusted team at CoverWallet to determine what policies best fit with your services.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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