Is it a requirement to have professional liability insurance for small businesses?
If you are a consultant (whether it be IT, marketing, HR, management), an engineer, or a finance professional, to name a few, your clients could accuse you of bad advice leading to a financial impact on their part.
As a result, professional liability Insurance is extremely important for anyone engaged in providing professional services or advice, not only to cover damages but also for defense costs. Regardless of whether or not you are actually found to be negligent, the legal costs associated with defending yourself could result in a significant financial setback. Protect your personal financial future and the longevity of your business by purchasing professional liability insurance. For a small business, it can often be extremely affordable relative to the protection and peace of mind it brings.
There are some professions who are required to purchase and show proof of professional liability coverage. In other cases, some clients may refuse to work with you if you do not have evidence of insurance.