We’ve covered professional liability insurance in a previous blog (Professional Liability Insurance: Safeguarding Your Business), so that blog can be a resource for you as well. In this blog, we will chat about the benefits of PLI and why your Metro Atlanta business should consider getting this type of coverage. Let’s get started by covering the basics.

What Is PLI Insurance?

Professional Liability Insurance (PLI) (also known as errors and omissions insurance) protects businesses against claims of negligence, malpractice, or misrepresentation. PLI covers legal fees, settlements, and any other judgments awarded during a case. This safeguards the financial stability of the business.

PLI is very important for service-providing businesses and consulting services. This type of insurance makes sure you’re protected against the financial risks of potential lawsuits.

Why Small Businesses Need Professional Liability Insurance

Not only does PLI insurance protect your business, but it also helps to build credibility with your clients. To clients, this means that you care about them and are committed to doing the right thing by them.

How to Choose the Right PLI for Your Business

There are a lot of factors to consider when selecting PLI for your small Metro Atlanta business. Things like your industry, your business size, and the risk level associated with what you do all come into play. If you aren’t sure what level of insurance to commit to, speaking with an insurance professional can certainly help. Come prepared to this meeting with a summary of your services or products, and be open and honest about how risky some of your interactions are.

How Much Does PLI Cost?

As you can imagine, insurance package costs are going to vary widely depending on the factors above — and more. However, we don’t want you to get hung up on the cost. Keep in mind that, especially for businesses with high risk, PLI is a safety netIt may be one you never want to have to use, but if you do need it, it will be there and easily recoup all of its costs.

In general, you can expect costs as low as $40 a month; for businesses with prior claims, it’s not unheard of for PLI to costs a hundred dollars or more a month. Check out this Forbes article for more information. The best course of action, of course, is to chat with an insurance agent to see how much your policy will end up costing you.

How Can I Reduce My Professional Liability Cost?

You can always take a look at the factors that are causing your premium to skyrocket. For example, consider doing a risk analysis on your own; how can you make your services less risky for clients? Another thing you can do is shop around and get an idea for how certain factors are affecting your premium with each company; this can not only find you better rates but also inform you about why your premium is so high. PLI shouldn’t be a really high business expense.

Resources for Learning More

If you want to learn more about PLI, we recommend checking out the following reputable sources:

  • Insurance Information Institute
  • Small Business Administration (SBA)
  • National Association of Insurance Commissioners (NAIC)
  • Professional Liability Underwriting Society (PLUS)
  • Your Local Chamber of Commerce

Contact Apex Insurance Today for More Information About PLI

If you want to work with a local small business in the insurance sector, contact us today. We can chat about your Metro Atlanta small business to find exactly the coverage that works best for you — without overspending on insurance options you don’t really need.

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