The Need for Professional Liability for Small Businesses Continues to Grow
In recent years, the economy’s small business sector has seen unprecedented growth, and U.S. Census Bureau data indicates this growth remains significantly accelerated since 2019.
More recently, the COVID-19 pandemic, social changes and changes in the technological landscape have led to an increased demand for many services offered by small businesses. Some sectors that have seen notable growth include:
- Educational consultants: The increasing importance of science, technology, engineering and math (STEM) education is fueling demand as educational institutions seek to prepare students for job opportunities
- Coaching services: Companies are increasingly engaging coaching services for their executives, leadership and employees to promote both employee and financial performance
- Notaries: The pandemic led to increased demand for mobile and notary services, and demand for these services remains high
- Human resource consultants: This class includes diversity, equity and inclusion consultants, which are rising in numbers due to attempts to better employee dynamics within all industries
- Marketing consultants: Demand for marketing experts continues to rise as companies increasingly look to develop digital marketing strategies
Though small business services are in demand, their owners face a variety of unique challenges, including economic uncertainty, inflation and the continuation of workforce shortages. Further, continuing supply chain problems, an increase in interest rates and high gas prices place additional strain on small businesses.
Creating a comprehensive risk management program is especially important for small businesses in these uncertain times. General liability policies exclude professional services; therefore, an errors and omissions policy is an essential part of any successful risk management program.
Errors and omissions coverage can assist small businesses in mitigating risk as they grow and face a changing consumer landscape. Attorney fees in even the most frivolous lawsuits can amount to thousands of dollars for just a few hours of service. Two hours with an attorney could cost more than one policy covering an entire year of legal support during a lawsuit.
USLI provides best-in-class errors and omissions coverage through our Specified Professions product. Highlights include:
- Convenient quoting options, such as web quoting and Instant Quote phone quoting
- Defense costs outside the limit of liability, which prevents defense costs from eroding the limit of liability
- Duty to defend wording, which automatically provides legal counsel for an insured named in a suit that includes allegations covered under the policy
- Availability of a Preferred Package policy (provides both general liability and business personal property coverage)
- Access to free and discounted services that save time and money through USLI’s Business Resource Center
Helping businesses create an effective risk management strategy will be more essential than ever over the next several years, and USLI is here to help. Contact your Professional Lines underwriter to find out more about how we can help you protect your small business risks.
As always, we thank you for your support and business.
Contact James Baker
Underwriter – Travel | 844-438-6775 Ext. 7511
Written by Jaclyn Pankow