If your job has a high risk of injuries or malpractice, your clients can make legal claims against you, which could be stressful and expensive. Professional liability insurance covers the cost to defend yourself, as well as damages awarded in such a lawsuit.
What Type of Policy Should You Look for?
Medical Malpractice Insurance
This insurance is for licensed health care professionals. It covers the legal costs if your patient sues you for wrongful practices resulting in bodily injury or medical expenses.
Malpractice Insurance for Nurse Practitioners
Nursing malpractice insurance protects nurses against lawsuits and claims of malpractice. Check if your hospital covers you for liability before signing up for a policy.
Error and Omission (E&O) Insurance
E&O insurance protects professionals like accountants, consultants, or lawyers if they are found liable for faulty advice or negligence related to their professional service.
Directors and Officers (D&O) Liability Insurance
D&O liability covers directors and officers of an organization against lawsuits and allegations of wrongdoing and fraud in their professional roles.
Contractor Liability Insurance
This insurance covers contractors in the fields of construction, IT, media, etc. from negligence or malpractices associated with contractual agreements.
Architects Liability Insurance
This insurance protects architects, their partners, and their employees against the damage caused by design flaws, faulty materials used, or negligence such as not communicating the changes in plans and failing to complete the project on time or within budget. It covers legal costs and any settlements or judgments you must pay.
Engineer Professional Liability Insurance
It protects engineers if they fail to look after the potential problems in the site, resulting in losses to the client in the form of repairs or temporary closure of operations.
Notary Liability Insurance
This insurance protects notaries against claims caused by improperly notarizing a document. It covers court costs and attorney fees, pays claims if you are at fault, and deters people from filing false claims against you.
Counselor Liability Insurance
This insurance covers counselors from emotional or physical injuries caused by incorrect diagnosis or wrong advice or recommendations given during a counseling session.
Who Needs Professional Liability Insurance?
A professional liability policy is required for businesses that:
• Offer professional services directly to customers
• Regularly advise clients
• Supply materials to clients
• Sell products or equipment
• Monitor a client’s activity and provide feedback
Limits and Retention
Professional liability policies contain:
• An Individual Limit – The amount your insurer will pay for each claim or wrongful act.
• An Aggregate Limit – The total policy amount, which your insurer will pay for all claims during the policy period.
• A Retention – The amount you must pay out of pocket for each claim, either for damages or claims expenses.
What Are the Uncovered Aspects of Professional Liability Insurance?
• The coverage does not include criminal prosecution.
• It doesn’t cover claims that are not directly related to your work.
• Your policy may not cover cyber liability or data breach. If you handle sensitive data, you can consider additional “cyber insurance” for protection against cybercriminals.
• Personal liability policies are generally claims-made policies; they cover only potential claims made during the policy period. However, some policies may include a retroactive date to cover past claims.
How Much Does Professional Liability Insurance Cost?
The cost will depend on your profession, location, years of experience, and the kind of coverage you want. On average, the cost is about $700 per year.
These were some coverage facts about professional liability insurance. If you’re looking for a comprehensive commercial insurance policy, contact the experts at Knight Insurance Services. We are ready to help you with all your coverage needs today.