Professional Liability Coverage


Professional liability insurance provides protection in the event of a liability claim for professionals providing a service. For those in the medical field, this coverage is called medical malpractice insurance. However the need for this kind of protection is not limited to those in the medical field. The insurance will provide payments in the event of a judgment for errors or omissions resulting in financial loss or injury. Any professional with a fiduciary responsibility should have protection. The kinds of service professionals who have this type of insurance include accountants, consultants, real estate professionals, appraisers, lawyers and financial advisors among others. If an individual is sued, their personal assets such as homes, cars and other possessions are potentially at risk. All it takes is one mistake – and it can mean financial disaster and could cause the end of a career or business.

Liability insurance policies can help cover legal expenses to defend against frivolous or unfounded lawsuits. For professionals working as an employee of an organization with its own malpractice insurance, they may want to consider having individual coverage, just to ensure they are properly protected.

What to look for in your policy.

You want to look for a policy that is specifically designed for your industry and provides protection for:

-Legal fees and other costs of defense
-Reimbursement for licensing board issues
-Settlements and court costs

There are many different types of specialized coverage.

Some of the more common include:

Accountants Professional Liability – Accountants and related businesses can be protected from claims alleging a negligent act, error or omission in the performance of their professional services.

Employment Practices Liability (EPLI) – Business owners with employees will want to have EPLI to cover claims for discrimination, harassment or wrongful termination. This coverage is specifically designed to help protect the insured and their business in the event an employee brings a suit or administrative charge.

Engineers and Architects Professional Liability – Coverage is provided for claims alleging a negligent act, error or omission in the performance of their professional services.

Not-For-Profit including Directors and Officers with Employment Practices Liability – Protects the directors and officers of not-for-profit organizations in the event of a suit for an actual or alleged wrongful act in connection with their position at the organization. EPLI coverage is also included to help protect the organization in the event an employee brings suit or an administrative charge related to employment practices. This may include things such as harassment, discrimination or wrongful termination.

Technology Services Errors and Omissions Liability – This coverage provides protection to specific types of businesses that provide their clients with technology services and covers the insured from liability arising from mistakes, whether real or alleged.

Umbrella Liability for Businesses – Your liability insurance policy would protect your livelihood from lawsuits arising from your business up to the policy limits. Umbrella liability can add an additional layer of protection.

This type of protection can be complicated and as such we recommend a comprehensive review of your unique situation so we can tailor a solution for your needs.

Contact us today for more information on this extremely important insurance protection.

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