Questions to Ask Your Agent about Professional Liability Insurance
What Does My Current General Liability Coverage Already Cover?
It is very important for anyone insured to be knowledgeable about what is and is not covered by their current liability insurance policy. While General Liability Insurance usually covers liabilities arising from bodily injury, property damage, personal injury, and advertising injury, there can be riders or endorsements that add coverages that overlap with Professional Liability Insurance policies. In some cases, Professional Liability Insurance policies can cover General Liability risks like some kinds of bodily injury. Any insurance consumer needs to work with his or her agent to make sure there is adequate but not overlapping coverage. Inadequate coverage can mean that there is not enough insurance when a claim arises, while overlapping coverage can lead to paying for features that the professional does not need.
What Is Covered in the Policy? What Is Excluded?
There is no standard form for a Professional Liability Insurance policy, and coverages can vary quite a bit from insurance company to insurance company. Certain types of Professional Liability Insurance, like Errors and Omissions Insurance, are more limited, while others cover a broader range of risks. Depending on the business being insured, some coverages may not be needed. However, it is vital that any insurance purchaser know what is and is not covered under his or her policy to prevent nasty surprises in the future.
Who Is Covered under the Policy?
A business owner must know what individuals are covered by the policy. Is it just the business owner? Are the employees covered as well? How about subcontractors? In some cases, employees or contractors may have their own Professional Liability Insurance, but in others the business owner will be expected to provide coverage for them. Since businesses can be held liable for the actions of employees, it is very important that any Professional Liability Insurance policy purchaser know who is and is not covered.
How Is a Claim Filed?
When a claim occurs, it is extremely important that the business owner or professional informs the insurance company as quickly as possible. In some cases, failing to do so can void the insurance. The business owner or professional must know the procedure for filing a claim. Is it through the agent? Is there a phone number to call? Must forms be completed? Knowing this process in advance can save headaches when there is a claim.
Professional Liability Insurance Directory