Why is professional liability insurance for self-employed individuals so important?
Making mistakes is human. Business owners also make mistakes. Even small mistakes can cause considerable impact. This impact can be felt both by the client and the entrepreneur himself. Assured are for such errors? Professional liability insurance offers a solution. This is especially true if you are a consulting profession.
By taking out professional liability insurance, you, as a business owner, have less to worry about when it comes to causing damage. Without these worries, you can focus more 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?
Does the client require professional liability insurance for self-employed individuals?
Many clients require a certain degree of assurance when outsourcing work. As a result, it is now common for contractors to be required to have professional liability insurance. Why is this? If you make a mistake, the client will often be held liable. The client will have you sign a statement acknowledging that, as a self-employed professional, you are liable for your own mistakes. This is why professional liability insurance is essential: it cannot be expected that every self-employed professional has sufficient funds set aside to cover damages out of pocket…
Looking to get professional liability insurance? Calculate your premium!
Protect your personal finances with professional liability insurance
Although it doesn’t happen often, the financial losses from a claim can be enormous. As a self-employed professional, you almost always operate as a sole proprietorship. Operating as a sole proprietorship has many advantages. Unfortunately, this legal structure also has disadvantages: for example, you remain personally liable for financial damages. This is in contrast to, for instance, a private limited company. Precisely for this reason, it is a very good idea to purchase professional liability insurance as a self-employed individual.
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 liability insurance does not cover professional liability. You cannot rely on personal liability insurance for professional errors as a self-employed individual. This is a common mistake, because people reason as follows:“As a self-employed individual with a sole proprietorship, I am personally liable, so my personal insurance must also provide coverage.”Not so! Choosea good professional liability insurance policy.
Get your self-employed professional liability insurance through Alpina
Are you a business owner? Are you looking to purchase professional liability insurance? At Alpina, we offer 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 you.
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