Why is business insurance important? The financial cost involved is probably the biggest reason for not having insurance. This logic is quite common. It is logical to not get insurance if it is too expensive and there has been no reason to. Wrong.
Unexpected disasters can be more dangerous for your company than any other thing. Without adequate insurance, your business is one step away from financial ruin.
Unbeknownst to many, whether they are self-employed or small business owners, is the fact that all businesses are at risk of being sued. There are many possible disasters that could happen in the future and no one can protect themselves. Insurance exists because of this. This is why you need to have business insurance. It is why you should make the investment to ensure that your business is protected.
A lawsuit for professional misconduct is another potential risk. This is why professional liability protections should be included in all business insurance policies. One lawsuit for professional misconduct could not only place your business at serious financial risk but also can affect your reputation and the reputation of those around you. Without liability protection, your professional standing can be permanently endangered.
You could actually have unlimited impact on people if your business is successful and growing. Without warning, your services or outsourcing to others could be the subject of litigation. Without professional liability insurance, any business cannot protect itself from all possible lawsuits.
Consider the impact your professional conduct has on others and how you could be at risk for litigation. Clients are your direct service. These clients use your work to run their businesses. This has a positive impact on their clients who then use your work to help others.
Sometimes it can take many years before something becomes the subject of litigation. A lawsuit could strike without professional liability protection. You won’t be able to predict what will happen. Smart businesses can avoid this by having the right coverage and foresight.
Some jurisdictions will not allow you to hold a license or operate a business without professional liability insurance. Because they don’t want their business to be sued, some businesses won’t do business with you unless your professional liability coverage is included. Professional liability coverage is an important part of business insurance. It allows you to practice good business and protects you from any potential lawsuits.
Some business owners and professionals may believe their conduct is perfect. Some professionals might feel professional liability insurance coverage is unnecessary. People believe that you should do what you say you will, and give the best service and professionalism possible.
This thinking is flawed for two reasons.
The first is that your are human. You will make mistakes. You can be destroyed if you make one mistake. Although it may be comforting to believe it won’t happen, you should still be concerned about the possibility of it happening. Consider it. When disaster strikes, it’s when you think to yourself, “I should not have seen this coming.” You can avoid disaster by obtaining professional liability coverage as part your insurance package.
You can’t rely solely on your conduct because you cannot see how innocent or frivolous a lawsuit could be. And how expensive it could end up if it is successful. You can almost forget about worrying by having business insurance that includes liability coverage. Only then can you trust your professionalism and conduct. If the truth prevails, adequate insurance coverage will make that victory less worrying and worrisome.
Although professionals and business owners would love to believe that they won’t get struck by lightning, or that their business insurance is too expensive, it’s smart and prudent to make sure you have the right coverage, which includes professional liability. You might find yourself in a situation where you wake up one day to see that you have been served with a Notice of Litigation and your business’s future could be at stake.