Professional liability insurance is a broad industry term that pertains to insurance coverage protecting professionals from claims filed by clients. Since each profession provides different services, liability insurance coverage also varies. What is essential to understand is that general liability coverage will not offer the same protection as liability insurance specific to your profession. Often, professional liability covers claims arising from malpractice, misrepresentation, and negligence.
Does professional liability insurance have limitations?
Although, for most professions, professional liability is the most comprehensive coverage available, there are still some things it cannot cover. For example, not all legal liabilities may be listed in a particular policy. Moreover, issues such as data breach or anything related to technology are not always included.
It is essential to carefully analyze the coverage details before choosing a specific insurance product. Keep in mind that professional liability insurance is the protection you need for your trade. As much as possible, you want a policy that can give you peace of mind.
Different types of professional liability insurance
Here are three common types of coverage available for different kinds of professions:
- Insurance for officers and directors. One unique type of professional liability coverage is insurance available for high-ranking office employees, such as directors and CEOs. It is available for companies, non-profit organizations, and private corporations. Leaders have higher responsibility and are often held accountable for significant business decisions. As such, they need protection from the risks associated with their role. Moreover, these policies are typically paid by the company instead of the person insured.
- Medical malpractice coverage. Another common form of professional liability is medical malpractice insurance. What it does is protect medical professionals like doctors from suits and claims filed by patients. This type of insurance coverage is quite popular because a claim may involve a large amount of money. Medical professionals usually take out a big policy to ensure they have ample coverage.
- Errors and omissions. This type of liability insurance is designed for individuals whose profession involves giving advice. This coverage is suitable for many professionals, such as lawyers, real estate agents, accountants, insurance agents, investment brokers, and trade professionals. Coverage is typically customized according to the profession so that it provides the right coverage.
If you are getting professional liability coverage, it is essential to focus on the wording. While the industry follows a particular standard in using the right words for a policy, some providers are stricter than others. For someone without a legal background, specific terms may be considered confusing and could mean different things. In choosing a policy, the first thing you need to do is consult with an insurance expert. Understand what coverage you need depending on your work, and look for a coverage that provides sufficient protection against all kinds of liability claims.
Although insurance products seem quite similar, professional liability insurance differs significantly. Apart from coverage and exclusions, it is critical to choose the right provider so that you can have the peace of mind you are looking for while doing your job.