Professional Liability Insurance Coverage

Professional Liability Insurance 101 - Part 1

Questions & Answers Regarding Professional Liability Insurance Policy Coverage.

The preceding information regarding professional liabiity insurance coverage is provided as general information, it is not intended nor does it replace a thorough understanding of ones own coverage or supercede the specific language of any insurance policy. Also remember that Professional Liability Insurance policies are not standard, every one differs. The terms and definitions presented here may be different from what is contained in a specific professional liability insurance policy.

Exactly what does Professional Liability Insurance cover?

Professional Liability Insurance protects with regard to errors and omissions committed by you, your partners or your employees in the course of their professional duties where you become or could become legally liable. For instance it would cover missed filing deadlines; medical, legal or accounting procedures/engagements that the outcome was below what was hoped for; or errors made in interpreting the law or applying a law. It does not provide as a rule general liability insurance or property insurance coverage.

With few exceptions, the majority of commercial and business owners policies exclude coverage for professional acts. No matter how careful mistakes (either actual or perceived) do happen.

So what does Professional Liability Insurance not cover?

Professional Liability Insurance doesn't usually cover slips and falls in an office, destroyed property, advertising injury, or other types of general liability claims. Sometimes you'll find add-on endorsements to provide some additional coverage for these incidents but these are best covered by your general liability or business-owners policy.

Professional Liability Insurance usually does not cover employment practices claims against you, such as wrongful termination, wrongful dismissal or sexual harassment charges. These are generally best covered by an Employment Practices Liability Insurance policy.

Why you should purchase Professional Liability Insurance?

Malpractice claims frequency tends to go up when the economy is not doing well. The actual number of errors or problems do not increase but more business deals go bad and people are looking for ways to become whole again. The problems were already there, however in a declining economy many of the problems come to light. One of the most important insurance benefits is having the insurance carrier pick up the defense costs and locate outside counsel to represent you. Many carriers have claim "Hot Lines" to let you discuss an incident ahead of it becoming a claim. And if a claim is submitted insurance carriers have pre-selected lawyers that specializes in handling malpractice claims in order to represent you and if nothing else give you piece of mind that when a problem takes place you are not all alone.

Where can you purchases Professional Liability Insurance Policies?

There are many insurance companies that write professional liability insurance policies. Actual coverage and costs can vary greatly from company to company. Professional Liability Insurance should be purchased from an Qualified, Licensed Retail Agency. Allow them to shop the many companies that they have access to in order to get you the lowest rates and best terms on your professional liability insurance needs.

Monument Commecial Insurance Agency is a Multi-State, Licensed, Bonded and Insured Insurance Services Firm providing complete professional liability insurance services as well we all other business insurance policy services. Please visit us @ Monument Commercial Insurance Agency for free quotes and details on your professional liability needs.