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FarmerBrown1229 02-14-2020 01:03 PM

Why is Professional Liability a must?
 
Professional liability insurance can pay the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. Basically, the claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

The main purpose of professional liability coverage is to go beyond general liability insurance, which typically covers property damage, personal injury, and bodily injury. With professional liability insurance, the insured is covered against a failure to perform as well as financial loss due to an error or omission relating to services rendered or products sold.


What types of businesses need professional liability insurance?

Some states require professional liability insurance, especially for attorneys and doctors. Other professionals that should consider professional liability insurance include:
• Accountants
• Architects
• Engineers
• Graphic designers
• Information technology (IT) consultants
• Insurance professionals
• Investment advisors
• Management consultants
• Real estate agents and brokers
• Software developers


The types of professional liability policies:

Claims-made: Most insurance policies for professional liability are claims-made. This means that the policy must be active both when the event took place and when a lawsuit is filed in order for a claim to be paid.
Occurrence: When or if you retire or change careers, you can purchase an occurrence policy that will cover any claim for an event that took place during the period of coverage. Including suits that happen after the policy ends.

Professional liability insurance will cover the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. Basically, coverage does not extend to non-financial losses or losses caused by intentional or dishonest acts. Other fees, such as licensing board penalties, can also be included. Policies, commonly, have a deductible ranging from $1,000 to $25,000. The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it represents. You can also add professional liability coverage in a Commercial Package Policy (CPP).

Will I be protected throughout work?
Depending on the scope of services being provided, some health care groups, for example, may name their employees on the facility’s Professional Liability Insurance policy. It’s important to know that even if you are issued some coverage by an employer, it may not be enough to protect you as an individual if you are accused of negligence in your work. Securing a Professional Liability policy in your own name is your safest assurance to protect your personal interests.

Your personal interests
at risk when you lose time. Regardless of guilt or innocence, legal proceedings can take months, if not years, to settle. That can mean time away from your practice in discovery and court. Time not attending your clients. Personal Professional Liability policy will pay you for lost wages for days spent away from work due to litigation.

Your finances. Even if you are absolved of any wrongdoing, the costs to defend yourself are outstanding. From discovery to settlement, legal fees cost thousands, consuming your savings and racking up unwanted debt. With Professional Liability you can choose limits up to $4,000,000 to cover these expenses.

Your career. In any kind of professional industry, reputation can mean everything. The word that you’re defending a case of negligence can seriously tarnish your reputation and the image you’ve worked hard to build. Securing Professional Liability Insurance says you take your profession seriously and you’ll stand ready to protect your good name.

Coverage you can count on. Sadly, sometimes mistakes do happen. As long as any errors you make in your work are not intentional or criminal in nature, Professional Liability Insurance will cover you.

Following the strict protocols of your discipline is essential to be successful, and is your best defense against unwarranted accusations. Buying a personal Professional Liability Insurance helps you be prepared, and protected if a claim is made against you.

What is the difference between professional liability insurance and errors and omissions insurance?
Professional liability insurance and errors and omissions insurance are essentially the same things. People use these terms interchangeably, and they are referring to the same basic product.

Why do I need professional liability insurance?
You often run extremely important and complex projects for your clients that they may not fully understand. Professional liability insurance is especially important for businesses like IT/technology consultants, business consultants and marketing consultants for whom incorrect advice or a failure to perform professional services could lead to a lawsuit. Even if you haven’t made a mistake, you can still be sued.

What is the difference between Commercial Liability and Professional Liability?
Both insurance policies protect your business from the financial burdens caused by claims and lawsuits. The difference between the coverages is in the risk exposures they protect your business from. Commercial Liability will protect your business against damage to property or physical injuries resulting from your business operations. Professional Liability will cover negligence related to professional service or advice.

Important Things to Consider:
Your Professional Liability coverage can provide protection from claims for services provided in the past and anywhere in the world. The cost of your insurance depends on several factors, such as the location of your business, number of employees, business type, and selected coverage limits. For example, a business with a small number of employees will have more exposure than a business with no employees, so its premiums can be higher. Contact our licensed agents today to receive your customized insurance quote.

It is important to understand that Professional Liability Insurance only covers the claims resulting from faults in a professional service or advice. Your business will still need to purchase Commercial Liability coverage to ensure protection against other claims.


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