As a business owner, you need protection against several common risks. However, with so many different types of insurance policies available, it’s easy to get confused. For example, what is the difference between Professional Liability Insurance and Workers Compensation Insurance? Do you need both? Keep reading to discover the answers to these questions.
What Is Professional Liability Insurance?
Professional liability insurance (PLI) protects professionals in the event of a lawsuit alleging negligence or errors in services provided.
This type of insurance is typically purchased by professionals who provide advice, consultation, or services to clients. Some examples include:
- Doctors
- Lawyers
- Architects
- Engineers
- Accountants
- Consultants
It’s worth noting that professional liability insurance will cover defense costs and damages awarded if found liable. However, PLI typically does not cover bodily injury or property damage.
What Is Workers Compensation Insurance?
Workers Compensation Insurance (also known as Workers Comp) provides benefits to employees who are injured or become ill due to a workplace accident or occupational disease.
Workers Comp provides coverage for medical expenses, lost wages, and rehabilitation costs. This coverage is required by law in most states, including California.
If an employer doesn’t have workers compensation coverage, they may be held responsible for the costs associated with an employee’s injury or illness.
The Difference Between Professional Liability Insurance and Workers Comp
The main difference between Professional Liability and Workers Compensation Insurance is that Workers Compensation only covers injuries or illnesses directly related to work, whereas professional liability insurance is for claims resulting from professional services provided.
Another key difference is who is covered: Workers Compensation covers employees, while Professional Liability Insurance covers small business professionals.
Do I Need Both?
The short answer is yes – if you’re a business owner, you should have both types of insurance coverage.
While Workers Compensation is required by law in most states, Professional Liability Insurance is required only in certain professions.
Do You Have Insurance Questions? Contact Our Experts Today
However, not having Professional Liability Insurance can lead to costly legal battles and reputation damage.
Keep in mind that even if you don’t consider yourself a “professional” in the traditional sense, if you provide advice or services to clients, you could still benefit from PLI coverage.
Finding the Right Coverage
Choosing the right insurance coverage for you and your business can be daunting, but it’s essential to protect your assets and reputation.
To find the best policies for your specific needs, consider working with an insurance professional who can help you customize your coverage and navigate the confusing world of insurance.
At Carter Bradley Insurance Solutions, our team stands ready to answer your questions and offer guidance. Contact us today!
Need Insurance? Carter Bradley Insurance Solutions Can Help
At Carter Bradley, our team is solely focused on your unique needs to find the best coverage for your business, home, auto and life insurance.
Contact us today by email at info@carterbradleyinsurance.com, by phone at (951) 547-4240, or through our social media accounts on Facebook, Twitter, and LinkedIn.
