Insurance coverage is at the forefront of many people’s minds these days. Certain types of insurance, like home and auto, are often required by law or a lender. Even if they weren’t, having the coverage they offer would be a good idea. At the same time, medical, life, and other policies are available. Though many people forge through life without those extras, they can also be helpful when it comes to covering unexpected expenses. Of course, business owners and other professionals have an even broader range of policies to consider. One of the most important of those is professional liability insurance.
What Is Professional Liability Insurance?
In a nutshell, professional liability coverage safeguards professionals against any lawsuits and negligence claims brought by the public. Professionals tend to believe their general liability policies will cover most problems like those, but all too often they’re wrong. That oversight can lead to significant out-of-pocket expenses and many other issues. Professional liability insurance bridges the gaps in general liability policies, offering added protection for those who are covered.
This type of insurance is considered a specialty policy. It covers factors other types of policies, like those that apply to in-home businesses, commercial properties, employee injuries, and data breaches, won’t pay for. The coverage sometimes goes by different names, depending on the industry in which policyholders operate. Still, it offers universal protection against losses caused by customer injuries, unsatisfactory services, negligence, and many other situations.
Do You Need Professional Liability Insurance?
It’s fair to mention that professional liability insurance isn’t necessarily required except in industries and cases where federal or state laws deem it mandatory. In some instances, a client may require a contractor to have this type of coverage before entering into a contract. Otherwise, it’s typically an add-on policy. Though it isn’t always legally required, having this type of coverage is certainly recommended. After all, the cost of lawsuits, potential medical expenses, and other repercussions can truly add up. They could be enough to force some businesses into bankruptcy.
In a more specific sense, certain professionals are strongly advised to carry professional liability insurance. Healthcare personnel fall at the top of the list, but they’re not alone. Consultants in various industries, IT professionals, marketing and advertising agencies, accountants, and interior designers are also prime candidates for the protection this type of insurance offers. Real estate agents, website designers, plumbing and electrical technicians, and many other professionals can benefit from professional liability insurance as well.
Several versions of professional liability insurance are available, each one with its own coverage inclusions and exclusions. Choose one that offers the types of protection you’re likely to need in your line of work. At the same time, most professional liability policies have limitations regarding payouts and other important factors. It’s important to understand those limitations so you aren’t caught off guard when a claim arises.
Getting the Best Professional Liability Insurance for Your Situation
Professional liability insurance coverage is required by law in some cases. Even if it’s not required in your specific situation, purchasing this type of coverage might be a good idea. Since several policies are available, it’s best to research carefully and speak with a coverage provider to ensure you get the right policy to meet your needs. While your policy may have certain restrictions and limitations, it’ll certainly provide coverage above and beyond that of other policies.