Professional liability insurance, also commonly referred to as professional indemnity insurance, protects professionals like architectural corporations and medical practitioners against potential negligence claims filed by patients and clients. It may have different names based on the profession it caters to. For example, professional liability insurance that caters to the medical profession may be called medical malpractice insurance.
If your client or consumer believes an error in your professional services triggered a monetary loss, they can sue you. In this case, professional liability insurance comes in. The frequency and seriousness of lawsuits against professional companies and individuals have been sustained by countless clients who think they have suffered damages when professional services did not meet their expectations.
Professional liability insurance covers a broad spectrum of professional activities and is devised around the actual needs of specific classes of occupations. It secures professionals such as accounting professionals, attorneys, real estate brokers, financial consultants, insurance agents, and doctors against neglect and other claims started by their customers.
Experts who exercise a particular field of the profession need this type of insurance since general liability insurance plans provide protection for claims like carelessness, misrepresentation, or malpractice.
Professional liability insurance may vary depending on the profession, such as medical malpractice insurance for the medical occupation and mistakes & omissions insurance for genuine estate representatives.
Professional liability insurance is specialty protection not offered under homeowners’ recommendations, at-home business policies, or entrepreneur’s policies. In addition, it only covers claims made throughout the policy duration.