PROFESSIONAL LIABILITY
What Is Professional Liability Insurance and How Does It Work?
Professional liability insurance (PLI) covers professionals such as accountants, attorneys, and doctors against claims brought by their clients for negligence or other reasons. Because general liability insurance plans do not cover claims stemming from business or professional activities such as carelessness, malpractice, or misrepresentation, professionals who have competence in a specialized field need this form of insurance.
Professional Liability Insurance Coverage
Professional liability insurance protects you against lawsuits including the following:
- Negligence
- Misrepresentation
- False information
Why Do You Need Professional Liability Insurance
Professional liability insurance should be considered by any company that offers a professional service or provides advice in order to protect themselves against lawsuits arising from their blunders.
Certain professions, such as attorneys, are required by law to acquire it before they may do business in certain states. As part of their business contracts, clients may also demand that a company carry a particular level of professional liability insurance. Professional liability insurance is required by a range of business professions, including:
Certain professions, such as attorneys, are required by law to acquire it before they may do business in certain states. As part of their business contracts, clients may also demand that a company carry a particular level of professional liability insurance. Professional liability insurance is required by a range of business professions, including:
- Consultants
- Attorneys
- Engineers \ Architects
- Real Estate Brokers
- Insurance Brokers
- Home Inspectors & Accountants
Does Professional Liability Insurance Include Coverage for Damages Due To COVID-19)?
When a customer sues you for poor job performance, professional liability insurance protects your firm. That implies insurance might protect you if a customer sues you for a job you couldn’t complete or a deadline you missed because of the coronavirus.
Take note that many commercial insurance plans do not cover communicable diseases. Contact your insurance company’s claims department if you believe you are qualified for a claim.
Commercial Umbrella Insurance and Errors and Omissions Insurance (E&O)
Professional liability insurance, as well as other underlying policies, might benefit from commercial umbrella insurance. It shields you from the most costly claims.
Professional liability insurance, often known as errors and omissions insurance (E&O) or malpractice insurance, may protect you against lawsuits arising from professional blunders such as missed deadlines and undelivered services. Excess liability insurance, often known as excess E&O insurance, is similar to umbrella insurance in that it may increase the policy’s limitations.
An architect, for example, may miss a deadline for generating a plan. As a result, the customer postpones development plans, resulting in a significant financial loss for the firm. The client chooses to sue the architect for the money lost as a result of the business’s delayed opening. The legal fees and settlement are covered by the architect’s professional liability insurance and excess E&O coverage.
Professional liability insurance, often known as errors and omissions insurance (E&O) or malpractice insurance, may protect you against lawsuits arising from professional blunders such as missed deadlines and undelivered services. Excess liability insurance, often known as excess E&O insurance, is similar to umbrella insurance in that it may increase the policy’s limitations.
An architect, for example, may miss a deadline for generating a plan. As a result, the customer postpones development plans, resulting in a significant financial loss for the firm. The client chooses to sue the architect for the money lost as a result of the business’s delayed opening. The legal fees and settlement are covered by the architect’s professional liability insurance and excess E&O coverage.
Excess Liability Insurance Coverage
Excess Liability Insurance provides coverage for the following items:
- Physical harm to a third party
- Injuries to employees
- Property damage to third parties
- Accidents in automobiles
Learn how the characteristics of your company affect the cost of professional liability insurance and how you might lower your premium.
Starting an online quote is the easiest method to receive professional liability insurance. You may contact us to get in touch with one of our expert representatives. They’ll assist you in determining which professional liability limits are most appropriate for your small company and customizing a policy to fit your demands and budget.