Professional liability insurance in Colorado

Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm.

Even an unwarranted lawsuit can be expensive between attorney’s fees, court costs, or a settlement.

Industries often at risk for professional liability claims include:

Colorado law requires physicians and real estate professionals to carry a professional liability insurance policy. You might also need this coverage to sign a contract or to get a license in your field.

Professional liability insurance covers your legal defense costs if you’re sued over a mistake in your professional work.

Even if you’ve done nothing wrong, a legal battle can be expensive. In addition to your attorney’s hourly rate, you’ll likely be charged for administrative costs such as copying, filing, and travel expenses. You may also have to pay for expert witnesses to testify on your behalf, a court-ordered legal judgment, or a settlement to avoid trial.

Professional liability insurance covers all the above, up to the coverage limits of your policy. The policy limits you choose should take into account how expensive it can be to fight a professional liability lawsuit. You also need to determine the amount of coverage required to obtain a contract or work in a certain field.

This policy can be quite affordable for small, low-risk businesses. Contact an insurance agent if you need help choosing the right coverage limits or other options.

A professional liability policy covers a wide range of lawsuits, but it won't cover intentional harm you cause to others. Most insurance companies exclude:

• The illegal violation of any law, regulation, or statute
• Any services you provide under the name of another entity, such as a subsidiary business or organization not listed on your policy
• Defamation, such as libel and slander
• Discrimination

General liability insurance doesn’t include professional liability coverage – it's a different kind of business liability insurance. Commercial general liability covers common business risks and liability claims such as customer bodily injuries, customer property damage, and advertising injuries like copyright infringement.

If a customer falls and suffers an injury at your workplace, it would be covered by your general liability policy, including any legal defense costs. If someone sues you over unsatisfactory work, it would be covered by your professional liability coverage.

Read more about general liability vs. professional liability insurance.

General liability and professional liability are often the first two policies bought by small business owners. However, they aren’t the only types of business insurance you need. Consider the following additional coverage policies to protect your small business.

Workers’ compensation insurance is required for all Colorado businesses with employees. Workers’ comp covers medical expenses and disability benefits for work-related injuries and illnesses.

Commercial property insurance covers your business’s physical location and equipment. It’s often required to sign leases.

A business owner’s policy (BOP) combines general liability coverage and commercial property insurance. It’s usually less expensive than buying each policy separately.

Commercial auto insurance is required in Colorado for any vehicles used solely for work purposes.

Cyber insurance coverage pays for costs related to data breaches and cyberattacks, including the cost of notifying affected customers.

Employment practices liability insurance (EPLI), a type of management liability insurance, protects against legal expenses related to claims of harassment, discrimination, wrongful termination, and other violations of employees’ rights.

Complete Insureon’s easy online application today to get small business insurance quotes from top-rated U.S. providers. Our licensed insurance agents can help answer any questions and provide advice.

Once you find the right Colorado business insurance, you can begin coverage in less than 24 hours.