Professional Liability Insurance
in Alaska

What is Professional Liability insurance?

Customers are becoming more difficult to please because of the increased competition. No matter how meticulous you may be in completing your work on time, mistakes could quickly turn into a dispute that could lead to a claim. Each time you offer clients advice or accept work with them, you accidentally take on exposure to liability, too.

Professional Liability insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services. Customers typically file claims for Professional Liability when they assert financial damage due to your services, products, employees.

If a product you have created fails to function or your advice has resulted in an economic loss to the client, you may be the victim of an action for liability. It could be argued that there was an error that you made or that your work was not up to par. But, Professional Liability insurance in Alaska can provide protection for your company from lawsuits brought by third parties caused by professional negligence or errors.

What does Professional Liability insurance cover?

Even if the claim is proven to be untrue, costs for legal and court costs can add up to thousands of dollars. Owners of small businesses could feel the financial impact on their company. The liability claims could lead to bankruptcy, or even the closing of a company in extreme instances.

Based on what kind of insurance you choose and the limit you agree to in the insurance contract Professional Liability insurance could help you save on:

• Legal Costs It’s not cheap to get competent legal representation. Most lawyers charge an hourly fee.
• Court costs includes filing documents with the court as well as underwriting charges.
• Settlements It is possible to avoid drawn out litigation. But, based on your attorney’s advice it is still necessary to make a payment.
• Judgments – On the other hand should your case go to trial and is found in favor of the plaintiff you’ll be required to pay the amount determined by the judge.

It is important to note that Professional Liability insurance Alaska protects you even though you aren’t the cause. Unfounded claims can cost as much to resolve as meritorious ones. A Professional Liability insurance policy can help you defend your reputation and business by paying the above and ensures that you’re not with a huge bill for these expenses.

What is not covered?

Professional Liability insurance protects many different companies from the typical risk-related risks they could face. It is important to be aware that these policies do not cover every risk your business might face. It may be necessary to search for insurance that covers certain events in different ways, like:

• Damage to property or loss of commercial property
• Damage to client property or property belonging to third parties
• Injury or illness related to work for employees
• Your premises may be the victim of third party injuries
• Business interruptions

BizInsure offers additional forms of insurance that can help your business protect against the risk factors mentioned above and more. Alaska small-scale business owners may want to look into General Liability, Workers’ Compensation and a Business Owner’s Policy for greater protection against a range of potential exposures that could affect their business.