Standard of care

The expected level of professionalism and service in a specific field or industry.

What is the standard of care?

Standard of care refers to a professional’s duty to act competently and provide quality services. If you fall short of the standard of care, a client usually has the right to sue.

The general principle is based on a “reasonable person” benchmark — how an average person would act in certain situations. However, professionals are often held to a higher standard. For instance, medical and legal professionals are held to the standards of their respective fields, not just the average person.

Example of standard of care

Consider a construction company that’s been contracted to build a residential home. The standard of care requires the company to use the proper materials, adhere to architectural plans, follow safety protocols, and complete the project within the agreed timeline. If the company deviates from these standards, it could be considered a breach of their standard of care.

Liabilities connected with standard of care

If a business breaches its standard of care, it opens itself to significant legal liabilities. Clients can file lawsuits claiming damages due to the business’s negligence.

For example, if a court finds the construction company mentioned above liable, it can be held responsible for compensating the affected party for repairs or even a complete rebuild. A client could also hold it accountable for any injuries or accidents resulting from negligence.

Factors to consider when determining the standard of care for your business

To maintain a successful business, it’s essential to meet or exceed your industry’s standards and ensure customer satisfaction. Ask yourself:

Do you deliver services as promised?
Do you complete tasks on time?
Is your work accurate and reliable?
Are customers and vendors treated with respect?
Do industry peers respect you?

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance

Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.