Professional Liability Insurance Cost, Coverage and Need for such insurance. Professional Liability Insurance is a special liability insurance tailored for professionals in different fields. It is generally used by doctors, nurses and medical field people, attorneys and lawyers, engineers and other such high risk jobs. Risk here does not refer to physical harm, but risk associated in case of any claim made by a customer. There is a need for Professional Liability Insurance because general liability insurance does not provide comprehensive coverage in such matters.
What is Professional Liability Insurance ? It is a specific insurance for companies and professionals who provide expert advice to customers or do technical work . People can claim for negligence or misleading advice, so what can the professional do in this case. The Professional Liability Insurance eliminates the headache and financial liabilities of the professional to the client by handling matters with the client. This way, the companies and advisers are safe from trouble and regular pestering problems.
Major Types of Professional Liability Insurance : It is referred by different names in different industries.
- E&O Errors and Omissions Insurance : This insurance provides coverage against damage caused due to errors and omissions. It is mostly required by software developers, website developers, real estate agents, insurance agents and consultants of all types.
- Malpractice Insurance : Professional Liability Insurance is called malpractice insurance in the medical industry. It is taken by doctors, nurses, surgeons, physiotherapists and other allied firms.
Rest other professions choose to call it just Professional Liability Insurance. Now, let us see what coverage such a policy provides and what it generally does not provide.
Coverage provided by Professional Liability Insurance :
- The insurance does not protection against all civil law claims. It just provides protection against specific claims only, which are mentioned in the Terms and Conditions of contract.
- Professional Liability Insurance does not provide cover against criminal cases.
- Ask your insurance provider if it provides you compensation income for the number of hours you have to be present in the court proceedings. When claims are made, people have to be present before a court proceeding. It is a loss of precious time for experts, so most insurance providers guarantee a compensation income for such hours.
- Professional Liability Insurance may not provide protection in case of a governmental or administrative action. So, you need to clarify this issue before buying insurance.
Professional Liability Insurance is a general term for insurance taken by professionals of different industries. Each industry is unique and has its own framework, so the insurance policies are also designed differently. There are some special coverage that are relevant only within one industry.
Cost of a Professional Liability Insurance : Insurance premiums generally are under $ 500 a year. The cost of professional liability insurance depends a lot on your industry, the revenue you or your firm is earning, size of the industry and level of exposure. These are technical terms having accurate description. If you want to estimate professional liability insurance cost , it can be done by comparing some quotes online.
Professional Liability Insurance is used by people all over the world to mitigate their risk of expert advice. Even teachers take this form of insurance. It is a useful insurance that can preserve your career and keep you away from hurdles. It is worth an investment for many people.