Who Needs Professional Liability Insurance?
Any person in a profession in which they provide advice or service may benefit from professional liability insurance. In many cases, carrying professional liability insurance is a requirement in order to practice.
The following service professionals are exposed to a high degree of risk due to the nature of the specific industry, and would benefit from professional liability insurance protection:
- Lawyers, financial advisors and accountants need specific professional liability protection in the form of Errors & Omissions (E + O) coverage.
- Healthcare workers including dentists, physicians, therapists and nurses need medical malpractice insurance.
- Teachers and principals should consider carrying individual professional liability insurance since in many cases the school’s policy may not cover individual teachers. Teachers and principals are increasingly the target of lawsuits.
- Electricians, plumbers, engineers and other service contractors should obtain individual professional liability protection in addition to surety bonding.
- Couriers, drivers and other transportation professionals that aren’t covered by an employer’s policy should carry their own professional liability coverage.
Carefully research and consider your risk exposure. Even if you’re not in one of the categories listed above, if you perform a service for a fee you could be sued by a dissatisfied client.
What Does Professional Liability Insurance Cover?
The types of claims most often made against professional service providers include negligence; misrepresentation; violation of good faith and fair dealing; and bad advice.
Professional liability insurance covers the costs associated with judgements, settlements and defense of the insured against any of those claims.
Even if the claim is ultimately found to be baseless and no settlement is awarded, it will likely take tens of thousands of dollars to mount the necessary legal defense.
Service providers perform to meet high expectations on a daily basis, taking this simple step to insure against any business liability risks, just makes sense. Contact us to discuss your insurance options.