Professional Liability Insurance

Companies and their employees and other professionals can make work-related mistakes. Even if you’re considered an expert in your field, slip-ups can happen. Fortunately, professional liability insurance offers a level of protection against claims that professional advice or services you provided caused a client financial harm due to actual or alleged mistakes or a failure to perform a service.

What Is Professional Liability Insurance?

Professional liability insurance helps cover claims of negligence, misrepresentation and inaccurate advice. Clients can sue if they believe you made a mistake, even if you didn’t do anything wrong.

You should know that professional liability insurance doesn’t cover everything. For instance, it won’t help with these types of claims:

·       Bodily injury or property damage—You should have general liability insurance to help cover the costs if there is an injury at your business or you damage someone’s property.

·       Work-related injuries or illness—If one of your employees gets sick or is hurt on the job, you should have workers’ compensation insurance to help them recover and return to work.

·       Data breach—You should consider cyber insurance if your business loses confidential or sensitive information about your clients.

Factors To Consider When Buying Professional Liability Insurance

When purchasing your professional liability coverage, there are certain considerations to keep in mind. These six factors can help you to determine what you need in your policy:

1.       Your policy should cover the full scope of your organization’s current professional tasks and services, as well as if any additional clauses you need for future work.

2.       Is your business potentially going through a sale, merger or another change at your organization?

3.       Do you have any exclusions? Review your list to ensure it doesn’t preclude coverage for any professional services or tasks that need coverage.

4.       Is an extended reporting period an option? These provisions offer extensions of time to report claims that might otherwise fall outside the policy period. What extended reporting period options are available, and how much time will you need to report a claim?

5.       Can the policy be customized or modified? Can you add extensions?

6.       Have there been any past tasks or activities that could result in a claim against your company?

By clearly outlining what you need in your policy, you can better protect your future.

How Is My Policy Cost Determined?

A variety of details can determine the cost of your professional liability insurance policy, including:

·       Business size, number of employees and clients

·       Claims history

·       Coverage limits

·       Type of business

·       Location

·       Years in business

How We Can Help

Learn more about how professional liability insurance can be part of your overall risk management program. Regina Jasak Independent Insurance can review your current coverage to ensure it meets your current insurance needs. Call us today at 855-834-9607.