What Is Professional Liability Insurance?
Professional Liability Insurance is a property-casualty insurance policy that covers various kinds of liabilities that arise from the conduct of professionals in their businesses. Professional Liability Insurance includes policies such as Medical Malpractice Insurance, which provides coverage for doctors and other medical personnel, and Errors and Omissions Insurance, which provides coverage for lawsuits and claims arising from mistakes and omissions.
Most business owners and professionals have some liability insurance through a General Liability Insurance policy, which covers losses and suits due to bodily injury, property damage, personal injury, or advertising injury that is the fault of the business or its employees, such as a slip-and-fall accident in a retail store. But any professional that does work for a fee can be sued by a client if the work is mishandled, incorrect, or incomplete, and the client suffers a financial loss as a result. A Professional Liability Insurance policy is the insurance that responds to claims of this sort.
For example, a lawyer who neglects to file important paperwork on behalf of a client, leading to a financial loss, could be sued for that mistake. An architect who designs a building that has structural problems and requires extensive repair could also face lawsuits and claims. And doctors are regularly sued for errors and complications that occur in the course of performing services for patients. Business owners are not only liable for their own actions, they can be held accountable for the mistakes of employees and contractors, as well. Even a small business can be hit with a large lawsuit if the financial damage caused to a client is substantial enough.
In some cases, the suits that arise from these kinds of professional disputes can be extremely expensive and even bankrupt a business. Even if the business is ultimately not deemed liable for the loss, the legal costs of defending against such a suit can be huge.
For these reasons, businesses that have exposure to potential lawsuits due to work done for clients should consider purchasing a Professional Liability Insurance policy to protect their business and its assets. Not only does Professional Liability Insurance provide coverage to pay claims and settlements from lawsuits, but it also provides defense coverage that insured businesses can use to pay for lawyers in case of a suit.
Professional Liability Insurance Quotes
The term "insurance quote" refers to when an insurance company assesses a risk in this case, a business and determines what it needs to charge in premium to insure that risk. An insurance quote is not a binding contract for insurance. But since insurance companies need to take so many individualized factors into account when underwriting policies they cannot provide information on pricing without having some or all of that information. The quote is the result of that analysis. Professionals considering purchasing a Professional Liability Insurance policy can get a quote in several ways through an agent they already use for their other insurance needs, from an agent or broker who specializes in this type of coverage, from an insurance company directly, or even through an online form. Some business associations also offer various kinds of insurance to their members
and can provide quotes. When a professional goes to an agent for a quote, he or she should expect to be asked a lot of detailed questions about the business to be insured, including annual revenue, the number of employees, what kinds of contracts there are with clients, as well as the claims history. The agent will share this information with the insurer to generate a quote, which will tell the business owner what that insurance company expects to be paid as premium. Any insurance consumer should always compare quotes from several companies because pricing can vary widely even for similar policies designed to insure the same risk. It is very important, however, when comparing quotes, to make sure that the policies being compared have the same provisions and coverages. The details of Professional Liability Insurance policies can be different from company to company, and the policy with the cheapest quote may not provide the best insurance coverage. The quality of the insurance company should also be a factor in selecting the best coverage, not just the lowest quote.
Professional Liability Insurance Directory