What is Professional Liability Insurance?

InsuranceLecturer — No matter how good you are at your trade, accidents happen. And, when they do, having the proper insurance coverage to protect you is a must.

Professional liability insurance helps to protect professionals such as physicians, lawyers, and accountants against any potential claims filed by their clients.

General liability insurance doesn’t offer the same kind of protection against negligence, malpractice, and misrepresentation that professional liability insurance does.

Professional liability insurance may have different names, depending on your type of work. In the medical profession, they may seek malpractice insurance as a substitute for professional liability insurance.

Real estate agents would be interested in errors ; omissions insurance. Professional liability insurance only covers claims made during the entire policy period.

It helps to protect the insured against any losses arising from any claims made during the policy period because of any covered error or any negligent act committed during the insured’s professional business during the policy period. Any problems that happened before the policy started may not be covered.

See also  The Trick To Finding Affordable Health Insurance

1. What Does it Not Include?

Professional liability insurance does not cover any criminal prosecution or any other forms of legal liability under civil law. Many core policies may not include cyber liability, covering data breach, or any other technical issues that could happen.

If you feel as though your business would benefit from data and technology security, other policies are available that will be able to cover that.

2. The Wording of the Professional Liability Policy

The way a policy is worded can vary greatly. Some are formulated so they are easier to compare, while others differ significantly in what coverages are provided.

See also  How to Get Cheap Car Insurance For Young & New Drivers

It is vital to make sure that the wording used in your policy directly applies to your business. “Negligent act” can have different interpretations based on the type of business. This would be something you would want to review thoroughly with your insurance agent.

3. Importance of Professional Liability Insurance

Think about your business and how detrimental it would be if something went wrong and you didn’t have adequate coverage to handle the problem. Medical professionals have people’s lives in their hands every day.

Their insurance allows them to work under the conditions that they will not be sued for alleged medical malpractice. Medical malpractice insurance can offset the cost providers would need for lawsuits.

See also  Why Millions Of Americans Have No Health Insurance?

It is crucial to speak with the right financial advisor that fits the needs of your company. Smart Asset provides a way for you to find financial advisors in your area within five minutes.

Smart Asset has vetted these advisors, and they are expected to help guide you in the right direction. Their goal is to do everything in your best interests and help you find the financial security that you need in today’s world.

You want to make sure that your business is protected against any claims of negligence because mistakes and accidents happen all the time. Having the peace of mind to know that you are protected for the hard work that you do will be instrumental in helping you succeed without worry.