What is Professional Liability Insurance?Professional liability insurance protects professionals such as accountants, lawyers, and physicians against negligence and other claims by their clients. Professionals with expertise in a specific field require this type of insurance because general liability insurance policies do not offer protection against claims arising from negligence, malpractice, mistakes, or misrepresentation.
How Professional Liability Insurance WorksDepending on the profession, professional liability insurance may have different names, such as medical malpractice insurance for the medical profession or errors and omissions insurance for real estate agents. Professional liability insurance is a specialty coverage not provided other policies.
Typical policy will indemnify the insured against loss arising from any claim or claims made during the policy period because of any covered error, omission, or negligent act committed in the conduct of the insured's professional business during the policy period. What Is Included in Professional Liability Insurance? Coverage does not include criminal prosecution, nor all forms of legal liability under civil law, only those listed in the policy. Examples of liabilities not covered by PLI are:
Examples of liabilities covered by PLI are:
Who Needs Professional Liability Insurance?If you work for a company that offers services, the company should have PLI, and your services should be covered under its policy. However, if you're a small business owner providing professional services or contracting your services to other businesses, you should consider purchasing this type of insurance. Some examples of professionals who need this insurance are:
|