Professional liability insurance covers claims related to professional negligence that may cause a client to lose money. If you or anyone at a business you own offers professional or specialized services, you could face professional liability claims.
The most common professions that carry this insurance include:
Even if your profession is not listed, you may still need professional liability insurance. All professionals and businesses should look into purchasing professional liability insurance for protection.
Both businesses and individuals may carry professional liability insurance, although it isn’t always required.
While professional liability insurance isn’t typically required by any state or federal law, you may be required to carry this insurance in order to obtain certain license or work on projects. If you are a contractor, for example, an entity that hires you for a job may require you to carry professional liability insurance. This protects them in case you do not finish the job or make a mistake that costs them money. Professional liability insurance also protects you from expenses related to a lawsuit such as defense costs, settlement expenses, court fees and more.
What Does Professional Liability Insurance Cover?
Professional liability insurance covers lawsuits regarding several types of losses including:
Breach of contract
Failure to follow up
Professional liability insurance is known by many different names, including Errors & Omissions insurance and medical malpractice insurance.
Medical malpractice insurance is professional liability insurance specifically for medical professionals and medical providers. If you run a hospital, for example, you may need professional liability insurance to cover the surgeons and other medical professionals in your hospital.
How Much is Professional Liability Insurance?
The cost of professional liability insurance varies depending on several different factors including your location, profession or industry, coverage limits, claims history, credit score and more. If you or your business has a history of claims regarding liability, you could pay more for professional liability insurance.
You can save money on this coverage by bundling professional liability insurance with other policies such as general liability and commercial property liability into a business owners policy.
Be sure to speak with an insurance agent if you have any questions about whether or not you need professional liability insurance and how to save money on this coverage if you do.