Over the years, many entrepreneurs have likely learned the value of carrying various types of reasonably sized small business insurance policies, and that often includes professional liability insurance. This may be particularly true for those who work as consultants for other companies, because while they are an entity unto themselves, they may still end up dealing with unforeseeable issues for which such coverage may be a necessity. The problem, though, is that in many cases, people may underestimate their need for such coverage and potentially carry too little, largely because of misconceptions they might have.
One of the biggest issues that HR consultants might have when dealing with professional liability insurance is that it can sometimes be perceived as only necessary in small amounts, according to a report from Talk Business Magazine. While any entrepreneur is wise to try to keep costs down as best they can, experts advise that trying to save money on this kind of coverage by going without, or only having bare-bones protections can end up being costly in the long run. When an issue does arise, legal fees and other costs can quickly outstrip what a professional might have been trying to avoid paying with low-level coverage, potentially many times over.
What else should they know?
Moreover, many professionals really think of this kind of insurance as being there for emergencies only, such as when an error they make results in a claim, the report said. But even the most confident and experienced worker in any field may sometimes make a mistake, and while they often aren’t going to cause major issues, the fact is that it remains far better to be safe than sorry. The point of calling something an error is that it was not intentional, so having adequate protection for any type of misstep, large or small, is often key.
Getting over the final hump
Lastly, one of the major reasons often cited by HR professionals who don’t have this type of insurance is that they think the shopping process is too difficult to undertake, no matter how necessary it is, the report said. That, in turn, usually leads to them cutting corners in this regard and potentially ending up with a plan that doesn’t meet their needs. But that’s also true of those who have such insurance but haven’t revisited their needs vis a vis their coverage in a number of years, even if their circumstances have changed.
The more HR consultants – or any professionals for whom such liability insurance (sometimes called errors and omissions insurance) is a recommended part of the job – know about this kind of plan, the better off they’re going to be in the long term. The fact of the matter is that having enough small business insurance is vital for any company going forward. However, those who remain concerned about the cost of coverage might want to keep in mind that they can potentially save thousands of dollars on it annually simply by shopping around for the right policy that best fits their needs.