The Most Common Professional Liability Myths

The Most Common Professional Liability Myths
By Sandip R. Chandarana, J.D., CPCU, RPLU

As an agent, you likely understand how hard your clients work to build their credibility among clients and throughout their communities in order to grow their businesses. When it comes to business insurance coverage, however, misinformation can prevent business owners from fully safeguarding their company. It’s up to you to dispel these common myths, which include the following:

Myth #1: “People in my industry don’t get sued.”

The fact of the matter is, anyone can be sued. If your client’s business is found liable and a financial judgment is rendered against them, that judgment will be collected no matter what. This means that wages can be garnished, equipment can be seized and sold, and bank accounts and assets can be seized to pay the judgment. Luckily, the right type of professional liability policy can typically pay for the full defense costs your client incurs, as well as damages, regardless of whether the legal claim is true or not.

Myth #2: “If my employer has professional liability coverage, I don’t need it.”

This may be true in some cases, but even in those cases, it doesn’t mean that an individual policy should not be purchased. In fact, personal plans are actually encouraged in some fields. Employer coverage is meant to look out for the best interests of the employers, not the individual interests of each employee on staff.

Myth #3: “If I use good risk management practices, I don’t need coverage.”

Business owners and staff may be as careful as possible with their customers, but this doesn’t mean they don’t need insurance. No matter what type of risk management steps are taken, there is always a chance of a lawsuit. These cases can be extremely damaging and could destroy a person’s finances, or even force a business to close.

These are just a few of the most common professional liability myths that are out there. The most important thing for your clients to understand is that they can’t afford to be without professional liability insurance coverage if they are business that offers goods or services for a fee.