Professional liability insurance: an offensive line for your small business

September 13, 2011

Running your own business is like quarterbacking a football team: everyone looks to you for direction, inspiration and the right play calls to make it to the endzone. But, just like a QB needs lineman to protect him, every company needs protection, to give you the time and space to make the right decisions. Think of professional liability insurance (errors and omissions insurance) as your firm’s offensive line. Few insurers I know are as intimidating as the 6’4”, 350 pound players that fill out the offensive line in pro football, but every day Hiscox lines up to protect our customers from getting beaten up by their opponents in a court of law. Lawsuits are not just stressful and distracting; they can actually shut down your business if you’re not prepared to defend yourself. This year alone, small businesses may face a bill of $152 billion in tort liability costs, according to the U.S. Chamber Institute for Legal Reform.

Professional service advisors, such as IT consultants, marketing consultants and business consultants, are particularly vulnerable to lawsuits from unsatisfied or unscrupulous clients. The danger of a lawsuit is always there, even if you've done nothing wrong, and we all know how much attorneys cost. You’re going to make mistakes from time to time - even Tom Brady throws a few interceptions every year. But, small business professional liability insurance gives you the security to know those errors won’t be fatal for your business. It’s an effective way to cover the defense costs of possible litigation as the cost of professional liability insurance can be as little as $25 a month in most states. So go ahead and execute your winning play book, with insurance in place, we’ve got your back.