PL insurance is professional liability insurance. Similar to general liability, or GL insurance, it is coverage that can protect you and your business from a lawsuit. The two are not the same coverage, however, and to be completely protected you may need both policies.
What a PL Policy Covers
Professional liability insurance can, in a sense, protect you from you. It can also protect you from mistakes made by employees, false allegations of negligence and malpractice or claims you broke a contract. The most diligent professionals sometimes make mistakes, and an accidental error or missing piece of information can give someone a firm footing to file a lawsuit. Even if you are not found guilty of any infractions, and no charges can be made against you, you can still incur huge legal fees to defend your business and keep things running smoothly. Some specific examples of what a PL insurance policy can cover are:
- Administrative errors or oversights that cause missing information
- Construction work that doesn’t meet the required standards
- Not providing the required product or service by an agreed upon deadline
Today’s business owner faces a multitude of risks, and one lawsuit can undo years’ worth of work and set back your business’ growth plan. Be certain you have the proper PL insurance coverages in place to protect these specialized areas of your business.