Who Needs Professional Liability Insurance

professional liability insurance Colorado

Regardless of the business activity that you are pursuing, the size of your company or the type of your targeted audience, your business needs multiple insurance policies to be able to operate legally and safely. One of these insurance policies is the professional liability insurance, known as professional indemnity insurance as well as by various other names, depending on the industry. Here are some of the Colorado professions and lines of business that need a professional liability insurance Colorado policy, and examples that can give you an idea about how this type of insurance policy works.


Any construction, restoration and remodeling project is complex, even the simplest rebuilding work requires professional knowledge, special tools and materials. Complexity in this case also means that there are many things that can go wrong, too – the hole that you have to drill in the wall might turn out to be too large; the wall color might be darker or lighter than expected; the floor tiles might not be perfectly installed. All these and the other potential risks make it essential for contractors to purchase professional liability insurance – if the client decides to take legal action against your business, the insurance will help you cover for the related expenses.

Beauty Professionals

The business of hairdressers, beauticians and other beauty technicians is not free from risks either. The instruments the beauty technicians use might cause cuts or other injuries to customers and any beauty technician might have unhappy clients. Professional liability insurance can protect these businesses from the claims initiated by unhappy customers and can help them protect their reputation as well as their profits.


Professional liability insurance is also called errors and omissions insurance in many industries, the segment of financial services included. The policy is very important for accounting businesses – these companies and enterprises live by making accurate calculations and by using their extensive knowledge of rules and any error or omission can be costly to the client as well as to the accountant. The professional liability insurance provides these accountancy and bookkeeping businesses the coverage they need to handle the claims arising from their alleged negligence, therefore the policy provides security and peace of mind to financial professionals.

Technology and Repair Professionals

Most companies today rely heavily on their computers and computer systems – any failure in their IT systems can cause serious damage to the operations of these company. The importance of IT systems also increases the financial impact of any error or mistake committed by the IT experts in charge of such systems, therefore they are among the businesses that need professional liability insurance the most.

Repair businesses also perform work on valuable equipment, any mistake they make, such as the incorrect identification of faulty components, the incorrect identification of replacement parts or the selection of an inadequate repair procedure can have dire consequences. Professional liability insurance policies can protect these businesses from the claims made by the owners of the equipment that sustained damage as the result of the repair technician’s activity, therefore it is one of the most important policies needed by repair companies.