/ BLOG

Professional Liability Insurance Choices for Small Businesses

May 31, 2017 · 4 minutes to read

If you’ve been in the market for business insurance lately you already know that there are a full range of options. The world of insurance is constantly changing and can be difficult to understand and navigate. One of the things that a lot of people get confused about is what is covered by General, Professional and Cyber Liability insurance. Professional Liability can be a stand-alone coverage or part of a broader Cyber Liability program. Likewise some aspects of Cyber liability, within Intellectual Property Infringement, are also covered in a typical General Liability policy. Confused yet?

My goal is to help you be an educated insurance consumer and eliminate redundancies or gaps in your coverage. Here are a few related questions that may be helpful in making decisions about your risk management program:

What is third party liability?

The 1st party is you; the 2nd party is the insurance company that sells you liability insurance and the 3rd party is someone who sues you. Third party liability is the risk of a 3rd party suing you claiming financial damages as a result of your professional services.

What does Professional Liability cover?

If you make a mistake, or are accused of making a mistake ( such as errors, omissions, and negligence) that results in financial damages. Covered losses include defense costs, settlements/judgments, pre- & post-judgment interest, damages, including both monetary awards as well as statutory, punitive, multiplied and exemplary awards where insurable.

Related: What does Professional Liability cover?

What doesn’t Professional Liability cover?

False advertising, antitrust/unfair trade, patent infringement, product recall, and license fees/royalties.

What does Cyber Liability cover?

  • Professional Liability – See above.
  • Intellectual Property Infringement (also called Media Infringement/Liability) – 3rd party coverage for acts arising out of your online products, services, and publications, release, dissemination or display of content (including your advertising activities, but excluding patent infringement).  Coverage for off-line media activities is typically considered within a General Liability policy.
  • Network Security* – protects you from losses arising out of a failure of your computer systems’ security causing a financial loss to a 3rd party.
  • Privacy* – covers claims where there is a loss of Personally Identifiable Non-Public Information (PINPI) in your care, custody or control (on-line or off-line).

Am I covered under my General Liability policy for any of the above?

As noted under Intellectual Property Infringement, it is likely you have some coverage included under your General Liability for things like: defamation, libel, slander, infliction of emotional distress, interference with right to private occupancy/trespass/wrongful entry or eviction.  This coverage is typically provided under the Personal Injury and Advertising Injury coverage parts of the general liability policy and is generally limited to off-line activities.

*Note that both Network Security and Privacy coverage components can be extended to provide protection for 1st party financial expenses and crisis management related to security breaches and/or loss of corporate/employee PINPI.

Everyone wants to avoid or minimize any harm coming to them and their livelihood. Thankfully there are solutions that can be customized for every kind of business. As independent consultants, freelancers, entrepreneurs and small business owners, we invest our blood, sweat and tears…or at least our time and money, into our businesses. Getting the right insurance is more than a contractual obligation – it can help you gain real peace of mind.

BizInsure Guest Blogger: Steve Geller

Talk to us

Today’s BizInsure offerings are just the beginning. Please take the time to tell us what you think, offer advice, ask questions, give compliments, or make a request…customer feedback defines us. We’re listening. Click here to contact us.

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Quick and professional service
Great quote for Professional and Liability!
Signing up was easy.
You guy are wonderful, very professional and honest. It was a very smooth process. very affordable. thank you. Calves Blake
Great value, customer service, and ease of communication.
Loved working with Bizinsure! Andrea was fantastic and made the process so easy!
BIZNSURE LLC, is outstanding the process was easy and quick. I was walked through step by step
Very easy to work with, cost effective, prompt renewal and easy to get certificates of insurance instantly. I use them exclusively for my professional and general liability insurance needs as a consultant. They simply make my insurance be easy!
BizInsure's online quote and process was quick, easy, and affordable. Jennifer, one of the representatives from BizInsure was great. She was very professional, attentive, and knowledgeable. I would definitely recommend this company to small businesses.
Very easy..straight forward..quick
BizInsure LLC made it easy to find coverage for my business. Highly recommend them for responsive service and quality insurance products.
Always Great with the updates and always get things done in a timely manner
Great use of my time. As a business owner I love not wasting time. Thank you so much for giving me more time. Even when I call in the time on hold is short and the rep is an American Professional.
Easy to use, Great customers service.
Thank you for allowing me to renew my policy without any hassle. I truly appreciate the updated phone calls. Have a wonderful blessed year.
Amy was very professional, she made sure that I understood my policy. I am very satisfied with the service.
Very professional, easy to use
They were very helpful on getting me insurance for my new business.
My 5th business policy and it’s always a smooth transition. Thank you again.
A real person answers the phone and was efficient and professionally friendly.
They took care of my request on the first call
Jennifer was exceptional. Responded promptly to all my questions, helped me research the options (I had a number of questions), made sure that I had all the info I needed to make a decision and overall made the whole process very transparent and easy.
The agents were helpful and very easy to work with. As a new policy holder I needed a little "hand holding" and they did it with kindness and ease.
Great experience. The representative was very helpful and worked hard to get me the right policy.
fast and easy online service
Amy R. Was personable, professional, knowledgeable, encouraged questions, made certain I understood explanations before moving on to the next. A great ambassador for your company!! Thank you.
Easy, correct coverage, value add on policy, easy financing
Google Rating
4.7
Based on 454 reviews





    This will close in 0 seconds