A Word From Our Sponsor On What You Should Know About Professional Liability Insurance
If you are in a profession that provides services or advice to individuals or companies, professional liability insurance is designed to protect you from the brunt of the costs of defending a claim of negligence, including any amounts awarded to the plaintiff. General insurance policies for businesses focus more on direct physical harm, and may not cover this type of litigation, which could be financially devastating to your business.
In general,professional liability insurance covers a professional individual or business from claims of financial loss caused by errors or omissions by the professional and the costs associated with the civil lawsuits, as laid out in the individual policy. Criminal lawsuits are generally not covered by this type of insurance policy.
While it is a good idea for any business professional to retain this type of insurance coverage, there are some places where it is required by law for specific professions, such as legal or medical professions. Some businesses may require your business to have professional liability insurance before they will enter into any kind of agreement for your services.
Medical practitioners, legal professionals, consultants, financial services, construction professionals, and even non-profit organizations may find it to their benefit to maintain this type of insurance policy. The cost of the policy will differ based on the needs of the business and the items that are specifically covered in the policy itself.