Professional liability insurance is a type of policy that covers damages you may cause to your clients or beneficiaries as a result of acts or deeds committed through your fault. This category may include errors, unintentional mistakes, omissions etc. – all committed during the professional activity for which you are authorized or in direct connection with it.
Specifically, this type of policy protects you from the consequences of disputes that may arise as a result of unintentional professional mistakes.
When you choose a professional liability insurance Colorado policy, you will have to read about legal requirements on the state`s Department of Labor and Employment website, or consult with a specialist. The thing is, the amount of liability insurance for a large business is different than for a small business, because it depends on the potential risks your business may face.
For example, if you are the owner and sole proprietor of a small design business, you have fewer risks than a building contractor, for example, that has many employees and provides services involving additional risks.
Your premiums will depend on the amount of coverage you request.