What makes professional liability insurance for self-employed individuals so important?

By taking out professional liability insurance, you, as a business owner, will have less to worry about when it comes to causing damage. Without these worries, you can focus better on your work! 

Comprehensive coverage against common professional errors 

Always be sure to distinguish between general liability insurance and professional liability insurance. These are two different types of insurance! The former covers property damage and bodily injury. Think, for example, of spilling a cup of coffee on an expensive computer. Professional liability insurance covers financial losses resulting from professional errors. This includes mistakes made by those in advisory professions—such as accountants, lawyers, and notaries. And did you know that some clients require professional liability insurance? 

Protect your personal finances with professional liability insurance 

Although it doesn’t happen often, the financial loss from a claim can be enormous. As a self-employed person, you almost always operate as a sole proprietorship. Operating as a sole proprietorship has many advantages. Unfortunately, however, this legal structure also has disadvantages: for example, you are always personally liable for financial damages. This is in contrast to, for example, a private limited company. Precisely for this reason, it’s a very good idea to purchase professional liability insurance as a self-employed person. 

Please note: Private insurance policies do not provide coverage while you are at work! 

Although you may already know this, it’s worth mentioning: personal insurance policies do not provide coverage for professional liability. You cannot rely on personal liability insurance to cover professional errors as a self-employed individual. This is a common mistake, because people often reason as follows:“As a self-employed individual running a sole proprietorship, I am personally liable, so my personal insurance must also provide coverage.”Not so! Be sure to choosea good professional liability insurance policy. 

Get your self-employed professional liability insurance through Alpina 

Are you a business owner? Would you like to purchase professional liability insurance? At Alpina, we offer you quality insurance coverage at a fair premium. Calculate your premiumto see what the costs will be for you. Do you have any questions about professional liability insurance? Please don’t hesitate tocontactus. Our insurance specialists are happy to help.