27 Feb Types Of Professional Liability Insurance
Business insurance is a necessary expense for people who own and manage their own companies. Whether the business is a sole proprietor or a large corporation, it is essential to have adequate business coverage for emergencies and other unexpected situations. People in certain jobs should also carry specific professional liability coverage. Learn more about the types of professional liability insurance and why they are important.
Basics About Professional Liability Insurance
Professional liability insurance may also be referred to as errors and omissions insurance (E&O). Typically, general liability insurance covers issues related to general business operations. Professional liability coverage helps pay for issues such as misrepresentation, negligence, poor advice, and failure to provide good faith. This is especially significant for people who counsel others and provide specific professional services.
Professional Liability Insurance for Doctor and Nurses
People in the medical field, such as doctors and nurses, need to carry professional liability insurance. From advising patients to performing surgery, there are many areas that could be scrutinized for errors and omissions. Often the hospital or clinic only has limited coverage in this area, which means medical professionals should always inquire about investing in their own policies to make sure such costs are covered.
Lawyers Need Professional Liability Insurance
Attorneys should always carry professional liability insurance. If clients feel they received inaccurate advice or were poorly represented, they might initiate a lawsuit. This can become costly to defend and pay for, which is why errors and omissions insurance is imperative.
Contractors Should Carry Professional Liability Insurance
Contractors are responsible for many aspects of building, rebuilding or renovating all types of homes and buildings. If a mistake occurs, it can cost quite a bit of money to repair. Having comprehensive insurance coverage can protect contractors from serious losses.
Professional Liability Insurance for Accountants and Business Consultants
Many other professionals that offer advice and services should also carry professional liability insurance. For example, businesses rely on accountants and business consultants for specialized knowledge and advice. This leaves people in these professionals vulnerable to facing claims. Other professionals that should consider carrying this coverage include IT consultants, financial advisers, real estate brokers, engineers, and architects.
In certain fields, it might be mandatory to carry professional liability insurance. It is prudent to verify you have enough coverage in the event a claim is filed against your business. Covering these costs without insurance can lead to a professional losing his or her license and business. Consult with an insurance agency to determine the level of coverage you should have. Often bundling business insurance policies can help you save money without compromising on the coverage you should have. Having a higher deductible is another way to lower monthly insurance premiums without skipping on the full range of coverage your company should have.