Professional liability insurance is a certain type of insurance for professionals. It is also termed professional indemnity insurance, medical malpractice insurance as well as errors and omissions (E and O) depending on the industry that you are in. Essentially, what this coverage does is protect against any negligence and civil lawsuit claims to the individual or company by a disgruntled patient or employee. This is an important type of insurance to have if you are in a number of industries. Some of the professionals that will benefit from professional liability insurance include medical professionals, consultants and financial brokers, financial service agencies, construction and general contractors and transportation companies.
Why do you need coverage for this particular form of insurance? The main reason is because sometimes accidents happen. However, when you are in an industry where your service makes all the difference to the happiness (or health) of the client, then you need something protecting this in the case of a conflict or accident. If not, then you could lose your business because of it.
Professionals That Need Coverage
There are a number of professionals that need coverage for these accidents. Builders and tradespeople look into purchase professional liability insurance to pay for any problems with disgruntled homeowners and commercial property managers. For example, if there is a problem with the plumbing or electrical down the road, then this could result in several thousands of dollars in extra costs to the homeowner as well as a potential for a fatal accident such as a electrical burn. If this happens, then the homeowner is most likely going to seek compensation by filing a lawsuit against the contractor or builder responsible for the job.
Medical professionals, such as surgeons, dentists and nurses choose professional liability insurance known as malpractice coverage. When the situation involves the health of someone then this is not something that you can fool around with. When something bad happens on the operating table or if someone passes away on your clock, then the family are going to have questions. Often they choose a file a lawsuit to pay for damages such as a loss of income, medical costs and a loss of support.
Financial services that offer advice often purchase professional liability coverage known as E and O insurance which protects against any errors in financial advice. When you are giving out advice about money, such as brokers, agents or consultants, there is always the chance that the advice you give will not work out for the client. This can cost them several thousands of dollars and often a very upset client. They may fight back by filing a lawsuit against you and demanding compensation for this loss and neglect.
Even those that transport people and items for a living, such as bus drivers or taxi drivers should consider professional liability coverage. If there is an accident, then you could be held liable in some instances. Negligent driving is a common cause for personal injury lawsuits across the nation especially when the accident results in a serious injury or fatality which often it does.
These are only some of the many professionals that will benefit from professional liability insurance. The reason you need coverage in any of these instances is simple – because lawsuits happen and you need to be prepared for them. You may be surprised how many people do seek legal action when something goes wrong. Having this coverage protects your reputation as well as your business from crumbling in the event of any accusation and civil lawsuit.