Does Your Small Business Need Professional Liability Insurance?

Many small businesses in Lake Oswego, OR rely on trust and expertise to serve clients. Whether you’re offering financial advice, design services, or professional guidance, clients expect accurate work. However, mistakes can occur, and when they do, they may result in costly claims. Professional liability insurance, sometimes called errors and omissions coverage, may help protect service-based businesses from claims of negligence or professional errors.

When Coverage May Be Needed

Professional liability is relevant in many industries, including:

• Consultants—Recommendations or strategies that don’t deliver expected results could lead to client dissatisfaction or even lawsuits.
• Accountants—Errors in financial reporting or tax filings may create financial losses for clients who hold you responsible.
• Health care providers—Mistakes in treatment or incomplete documentation could result in legal claims.
• Creative professionals—Missed deadlines, design flaws or project errors could cause disputes over lost revenue or damages.

Even small businesses or solo entrepreneurs can face these risks. A single oversight, even if unintentional, can have serious consequences.

What It Covers

Professional liability insurance typically helps with costs associated with defending a claim related to subpar professional services, including attorney fees, court costs, settlements or judgments. Coverage may also extend to allegations of negligence, misrepresentation or failure to deliver promised services. Without insurance, these expenses could overwhelm a small business’s resources.

Protecting Your Future

Some industries are required by contract or regulation to have professional liability coverage, while others benefit from the added protection. Even if you have strong client relationships, disputes can still arise. This coverage provides a safeguard so you can focus on running your business without the constant worry of a potential lawsuit.

At Action Insurance Company, we can help you evaluate whether professional liability insurance makes sense for your operations in Lake Oswego, OR. Get a quote today for coverage tailored to your business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.