Small Business Insurance: Protect Your Company While Managing Costs (4 of 5)

6. Professional Liability Insurance

Professional liability insurance protects businesses that provide services or professional advice. It works much in the same way as a hospital’s medical malpractice insurance in that it covers legal expenses if a client claims your work caused financial harm due to mistakes, negligence, or incomplete services. Examples could include an IT consultant setting up a system that later fails or an accountant who makes a critical tax error that has costly legal ramifications for a business. This coverage goes beyond general liability, making it as essential as cheap business insurance for companies offering expertise rather than physical products.

7. Cyber Liability Insurance

Cyberattacks and data breaches affect businesses of all sizes, both large and small. Cyber liability insurance helps cover the costs of responding to a cyber incident, including data recovery, customer notifications, credit monitoring services, legal fees, and even regulatory fines. With more companies handling customer data online, adding this coverage alongside employee benefits like business health insurance maintains customer trust and ensures internal security remains protected in the digital age.