Month: May 2021

Businesses That Need Professional Liability Insurance

Owning and running a business is rewarding, but it can often be challenging. A particularly complex aspect is understanding all the rules, regulations, and compliance elements involved. Even if you are an experienced professional and know your area, some things can go unnoticed until it is too late.

Companies in all industries face risks. If something goes wrong, a dissatisfied customer can cost you. Therefore, in addition to the certificates and licenses required for many businesses, it’s also essential to have adequate insurance coverage to avoid potential legal implications.

Certifications, Licenses, and Insurance Types

Certifications are recognized credentials of the skills of a professional, awarded by additional training in important areas. They are the best way to show that you understand your industry and your company is in good hands. In addition, most businesses require some certification to operate. For instance, restaurants are often required to maintain different food safety certifications.

Another component to consider is a license from both federal and state agencies. This document is essential for several areas: bars and pubs often need liquor licenses to sell beer or wine; businesses involving agriculture need licenses to import or transport animals, animal products, or plants across the state line, etc. Some licenses expire after a set period of time, requiring business owners to be aware of renewal deadlines.

Finally, one of the most critical and often overlooked requirements is insurance. Small businesses in all sectors need different insurance coverage not only to comply with the law but mainly to protect themselves from liability and possible lawsuits.

What is Professional Liability Insurance?

The essential insurance coverage for business owners is professional liability insurance. Even with all the technical knowledge, training, certifications, and licenses, sometimes you may be questioned by customers regarding the service you were hired to provide. Complaints can be due to late, incomplete, or unsatisfactory work, or clients can claim that your negligence costs them additional money, and the case may end in court.

Also known as “errors and omissions insurance,” professional liability insurance exists precisely to protect professionals from liability claimed by clients. This includes:

  • Negligence – failure to take proper care over the service you were hired to do,
  • Malpractice – improper or negligent professional behavior, and
  • Misrepresentation – giving a false or misleading account of the nature of your service.

What is Covered by Professional Liability Insurance?

In practical terms, having professional liability insurance can help cover expenses with:

  • Work errors
  • Undelivered or incomplete services
  • Missed deadlines
  • Budget overruns
  • Breach of contract

Suppose a customer sues your company for any of these causes. In that case, professional liability insurance can help with the lawyer fees, judicial and administrative expenses, and other costs associated with agreements and judgments.

What Isn’t Covered by Professional Liability Insurance?

While it is beneficial in cases where you are sued for making a mistake, professional liability insurance doesn’t cover everything. That is, you will still need to hire other insurance policies to protect yourself from other claims.

For example, for bodily injury or property damage, you need to have a general liability insurance policy. It helps cover the costs of legal action if someone gets hurt on your company’s premises or you damage someone else’s property while providing a service.

If your business has employees, workers’ compensation insurance is mandatory by law in most states to help cover cases of work-related injuries or illnesses (if your employees get injured or become ill due to the work they perform at your company).

Which Businesses Should Consider Professional Liability Insurance?

Who needs professional liability insurance? The simplest answer is most professionals. Every small business that provides professional services or advice directly to clients should consider having this policy; some clients even demand it when signing a contract.

Some professionals who should consider professional liability insurance are:

  • Real estate agents or brokers
  • Attorneys
  • Engineers
  • Architects
  • Auditors and consultants
  • Counselors
  • Accountants

The Importance of Being Insured

Running a business can be challenging. Professional liability insurance can make your life much easier. An architect can make a slight miscalculation; a product supplier can miss a deadline; an accountant can have a tax report questioned by a client. Claims of this kind can lead to costly lawsuits, which can even ruin your company if you have to pay out of pocket.

In such circumstances, the experts from Interchange Pros recommend going for B2B credit card processing that helps to protect your brand image in the market while saving your money to a considerable extent.

As a business owner, you must understand the risks associated with the profession you have chosen and hire the insurance coverage necessary to protect you and your business from the costs of negligence-related lawsuits.

Clients feel more comfortable doing business with someone properly insured, as this is a guarantee that they will be adequately compensated if any problem has to be resolved in court. Therefore, it’s a win-win situation in which everyone will feel safer.

Don’t Know What to Ask While Getting Life Insurance? We’ve Got You!

You only live once!

It’s a truth that nobody can deny. That’s why it is essential that you make the best out of this life. No need to restrict yourself and do whatever you want to do. In simple terms, complete your bucket list. Go bungee jumping, plan a solo trip, socialize and be yourself.

However, as your life is directly or indirectly related to your beloved family and friends, you have to think about them as well. You might agree with us that life is an adventure filled with uncertainties. And these uncertainties always end with financial loss. But if we focus specifically on life, the damage these uncertainties cause is way more disheartening than any financial loss.

Wait! Are you getting confused? Alright, let us explain it to you in an easy way. In the world of insurance, these uncertainties are known as risks. There are several types of insurance policies to cover different types of risks. If you ever have to face that risk, the policy coverage will safeguard you from the financial burden.

But! Not every type of risk can be minimized or eliminated, including the risk of losing a life. This loss will be a lot more than just a few hundred dollars. Still, it doesn’t mean that you should do something about it.

You should get a life insurance policy. So that in a situation where you are not with your beloved family, at least they don’t have to suffer from the monetary burden. It’ll be your way of showing that you care about them and want them to live the best life. Nonetheless, it is easier said than done.

You have to make sure that you select the best policy for yourself as per your requirements. And for that, you need to ask the insurance agent several crucial questions. Because remember:

“In the matters involving your life, always ask the questions that are right!”

Now, let’s tell you what questions that you need to get an answer to. Let’s Go!

From how many years is your company in operations?

First of all, you need to learn about the company’s history that you are interested in purchasing the policy from. It is essential that the company is genuine and has been in the market for several years. Do not get lured by the attractive offers of just any corporation. First, do a background check of the company online and after that, ask the agent about the company in person.

Only when you are fully satisfied that there are no issues with the company, take the next step.

Do you have all the required licenses to sell the policy?

If you are not getting your policy from the company but using a third-party service, you need to ask them this question. Generally, there are two types of licenses as per the type of policy they are selling, i.e.,

  • Life and Health insurance license: for all the life and medical policies
  • Property and Casualty insurance license: For motor, home, and business policies.

Thus, if your agent doesn’t have a license specifically for life and health, you shouldn’t get any policy from them. In fact, it would be better if you could file a complaint against them for selling policy without a valid license.

What type of insurance do you provide?

Insurance is a very vast subject. It includes numerous options of policies made according to the needs and requirements of the person. That’s why it is essential that you are aware of what type of coverage your company provides. Usually, it is of the following types:

  • Term life insurance: It is coverage for a limited number of years. Generally, those who have a specific budget for the policy prefer this type of policy, as it is relatively less expensive.
  • Whole life insurance: As the name suggested, this is the policy for the whole of insurers life. However, as compared to term life insurance, it is more expensive. But insurers have the right to fix its premium amount till the life of the policy. And can also be used for availing tax benefits.

Nonetheless, it is also crucial to understand your own requirements before you select a policy.

Do I have to get a physical examination?

Whenever the topic is about life or any medical policy, this question is what comes to the insurer’s mind. And we are sure the same is the case with you. You also want to know if you have to get a physical examination to get the policy.

Well, to give you the confidence to ask this question to the company/agent, we’ll tell you that “No, it is not necessary.” As per the agent at https://www.nophysicaltermlife.com/, if a person is scared of needles or doesn’t like the medical examination process, they can go for no exam life insurance. It will offer you almost the same benefits as a standard policy but won’t require any medical report.

How much amount of coverage can I get?

It goes without saying that not every person has the same financial condition. Some people earn well and can go for thousands of dollars of policy. On the other hand, some people take the policy so that they can help their kids or family with the collected money. They use life insurances as an investment to deal with uncertain future events. That’s why it is essential to ask about the amount of coverage.

It helps in determining the premium amount; thus, you can plan your monthly expenses accordingly.

Will I be able to upgrade my policy?

Usually, the clause of “conversion privilege” is included in every policy. This allows you to change your “term policy” into “whole.” It is a great option if you want to take into consideration the possibilities of future changes. That’s why you should definitely ask this question to the person and clear all your doubts regarding it.

To sum it all up!

All these questions are very crucial, and you have to ask them before you sign the policy. Besides that, if you have any doubt regarding the policy, you shouldn’t shy away from asking it.