There are many things you can do to protect your business from financial loss, but none are so important as comprehensive insurance policies. There are different liabilities within each industry or individual operations, and there are specific lines of coverage that address those concerns. For those concerned with the financial liabilities associated with their line of professional services, professional liability insurance can provide protection.
Purchasing a Policy
A professional liability insurance cost breakdown includes several factors. The average cost for PLI depends on the type of liability exposures your company faces due to the scope of services offered and the industry you operate in. Small business owners tend to have lower costs than larger corporations, with many hovering around $1,000 a year in premium costs.
High-risk industries have higher premiums, with architects or building design firms paying more than a staffing agency or accounting firm. The overall costs associated with a mistake are what determine the bottom line of policy costs. The coverage limits for the company or professional also impacts costs. Claim limits can range from $250,000 to two million or more, with the occurrence and aggregate limits often limited to one million in payouts.
No matter what a policy may cost a company, having PLI is a wise investment. The losses that a company may experience on account of a mistake could potentially ruin the company.