New media PLI is necessary for an immense variety of new media professionals. The list includes brand consultants, copywriters, editors, interior designers, media buyers, website marketers, advertising consultants, social media professionals, and so much more. For these businesses, a critical component of their risk management plan should be professional liability insurance.

While it may not be mandatory for managers to have business insurance, a manager can benefit from having PLI, as the insurance will protect them financially if they are sued. Managers can face claims alleging negligence, errors and omissions, misleading information, and more. Managers often work with large groups of people and may also interact with clients, making their jobs even more at risk.

Your professional liability insurance rate is based on many different variables. However, there are a few other ways you can reduce your current rate. Ideally, work with a professional liability insurance broker to discover how you can get lower rates.

Here are some tips to decrease your PLI premium:

• Practice proper risk management. Identify risks and mitigate them accordingly.
• Train employees. The biggest risks you will find often relate to human error.
• Avoid risks that are inevitable if your business is small and may not be able to recover.
• Purchase only what you need when it comes to insurance coverage.
• Work with a professional liability insurance broker to help reduce your rates.
• Bundle multiple insurance policies through a single provider.
• Ask about eligible discounts.
• Raise your deductible, which will lower your premium.

Any business that offers advice or gives a professional service to its clientele will benefit from professional liability solutions. Your company may also need another type of business liability insurance, depending on the industry. But PLI is the only type of coverage that protects against dissatisfied clients who may opt to sue over a missed deadline, delay, quality of work or mistake.

In many professional industries, professional liability insurance claims are common. Businesses and industries that may require PLI include:

• Construction contractors 
• Social services 
• Financial advisors 
• Health professionals 
• Counsellors 
• Consultants 
• Managers 
• Legal professionals 
• IT consultants  
• Photographers 
• New media professionals 
• Forensic experts 
• Engineers 
• Managers 
• And more 

General liability insurance, also known as commercial liability insurance, is a common type of liability insurance that businesses who interact with clients should have, as it protects them from property damage and bodily injury claims. For example, if a client visits your business and slips and breaks their arm, they could sue you for expenses related to the fall, including medical costs, rehab and more.  

At the same time, businesses who offer professional services or advice to their clients may need both general liability insurance and professional liability insurance. Some companies face the risk of bodily injury, property damage claims and dissatisfied clients that may sue for errors and omissions, negligence and more.  

One of Sharp’s business liability insurance brokers can walk you through the benefits of both types of business insurance policies and match your needs to the proper policy.  

Professional liability insurance can cover lawsuits that occurred because of alleged financial loss but weren’t found to be anything legitimate. You might be faced with numerous defence costs in the event of such a case, even if the lawsuit never makes it to court. You’ll still be covered in this instance.

If you’re sued over a work mistake or negligence, professional liability insurance can pay for your legal expenses. Lawsuits, even those that occur over a false accusation, can sometimes cost you up to hundreds of thousands of dollars, depending on the complexity and the length of the dispute. The willingness of your dissatisfied client to settle is also a factor.  

Costs for a lawsuit or legal defenses can include: 

• The hourly costs to pay a lawyer for all the time they spend on your case. 
• Administrative costs from your legal team for data processing, travel, shipping, copying, etc. 
• Court costs for filings and hearings. 
• Paying expert witnesses to explain more technical aspects of what you plan to argue. 
• Settlement fees if you want to avoid a trial or if a court-ordered judgement requires you to pay a settlement, should you lose your trial. 

PLI insurance is not mandatory for every industry. For some industries, provincial requirements will mandate carrying professional liability insurance. This is true of some medical professionals, where purchasing E&O insurance comes in the form of purchasing medical malpractice insurance. For other professionals, such as lawyers and financial advisors, it can be a case-by-case basis as to whether you need professional liability insurance.

For some occupations, clients may prefer to work with those who are insured than those who are not. This means you could lose out on potential work without the right insurance.

All in all, PLI is highly recommended, even if your industry does not require it. Many small businesses lack the financial muscle to recoup after a loss, so it’s better to be safe than sorry.