Professional liability insurance in Ohio

While Ohio doesn't require professional liability insurance for small business owners, you might need this insurance policy to sign a contract or to get a license in your field.

Any business, from Columbus to Toledo, 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 a frivolous lawsuit can be expensive between accounting for attorney’s fees, court costs, or a settlement.

Industries often at risk for professional liability claims include:

Professional liability insurance covers your legal defense costs if you’re sued over a mistake in your professional work, and it's affordable for low-risk businesses.

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 of 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.

For example, healthcare professionals in Ohio typically purchase policies with liability limits of $1 million per claim and $3 million in aggregate per year.

A professional liability policy covers a wide range of lawsuits, but it will not cover intentional harm you cause to others. Most insurance carriers 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 does not include professional liability coverage. General liability covers common business risks and liability claims such as customer injuries, customer property damage, and advertising injuries.

If a customer falls and suffers an injury at your workplace, it would be covered by your general liability policy, which would include your 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.

Commercial general liability and professional liability are often the first two policies bought by small business owners. However, they are not the only types of business insurance coverage that policyholders might need.

Workers' compensation insurance is required for all employers in Ohio, even if the company only has one employee. Workers' comp covers medical costs and lost wages for employee injuries and illnesses.

Commercial property insurance covers your business's physical location and equipment. It’s often required to sign a commercial lease.

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 Ohio for any vehicle used solely for work purposes. It covers costs related to a vehicle accident.

Cyber insurance covers the cost of dealing with a data breach or malicious software attack, including the cost of notifying affected customers.

Employment practices liability insurance (EPLI) protects against lawsuit expenses related to claims of harassment, discrimination, and wrongful termination that professional liability typically won’t cover.

Complete Insureon’s easy online application today to compare quotes from top-rated U.S. insurance providers. Our licensed insurance agents can help answer any questions about your business insurance needs. Once you find the right insurance for your Ohio small business, you can begin coverage and get your certificate of insurance in less than 24 hours.