Architect Professional Liability Insurance

Architect Professional Liability Insurance

Professional liability insurance is the most important type of plan any successful business can invest in. Without a solid professional liability insurance plan, most businesses would fold under the pressure of any claims leveled against them. Most companies plan to be in the industry indefinitely, but one tiny setback in the form of a claim can dash any dreams of success and prosperity.

Often called errors and omissions insurance, professional liability insurance covers a business against the more severe forms of negligence. This includes a wide range of negligent behavior on the part of employees, system-related machinery or the products themselves. If, for example, you lose client data due to a software or system glitch, clients will often need to be informed, and will most likely take their business elsewhere. This is especially true if the information contains personal, credit card or banking data. Any claims filed based on the above scenario would be protected under a professional insurance policy.

Other areas of professional liability insurance includes its ability to cover sub-contractors. Many businesses will often contract work out to others in an effort to expand their goods and services and set up contacts for larger, future goals. If something happens to this contractors while they are working for your business, you can be held liable. This type of insurance will protect you from any litigation coming from a contractor hurt on a contract job for your company.

Critical Coverage from Professional Liability Insurance

Many companies in the United States do not expect to expand outside the country. In the event that a business does gain a worldwide audience, professional liability insurance would cover them if a non-citizen filed a claim on U.S. soil. Also, if a third party claims any type of copyright infringement, intellectual property is protected under this form of liability insurance.

Professional liability insurance is not for all businesses. But if your company is beginning to grow and develop, it might be time to take a look at your long-term plans. You may want to invest in a solid liability protection plan that can protect you from any potential claims if you go global. After all, when it comes to insurance, it is better to be safe than sorry.