Professional Liability Insurance

Professional liability insurance is also called "indemnity insurance." Business owners in many industries are protected by professional liability insurance such as physicians, lawyers, and even accountants. What you are protected against is negligence that causes the injury or the death of another. In other words, this is insurance coverage that protects you in case an accident is your fault.

In the medical world, professional liability insurance is frequently referred to as "malpractice insurance." If something occurs during a medical procedure that causes injury to a patient or that patient dies as a result of a negligent act, professional liability insurance only covers personal injury, bodily injury, and property damage.  This is different from a general liability policy that includes things like premises and operations insurance. Even advertising injury claim is covered by professional liability insurance, so you want to make sure you are adequately protected in any way.

Be Properly Insured

Luckily, there are a number of items that you can add on to your general liability insurance so that you can be covered for your specific business type. The above is the perfect example. The doctor will have to add malpractice insurance to make sure he or she is covered in the case that something unexpected happens during an operation and a family brings about a malpractice suit. If the doctor is found liable, then the malpractice insurance provides the family with compensation.

Depending upon what the claim is for, the damages that can be awarded to an individual or their family includes lost wages, medical expenses, punitive damages, court fees, lawyer fees, and so much more. It is not unusual for some claims to be in the hundreds of thousands of dollars and for juries to award those amounts. Many times, those amounts are settled out of court because juries may award more than what a settlement would ever be.

With this said, you do need to be adequately insured. This means that you need to evaluate cases that have occurred in your state so that you can see what kind of settlements have been reached and what juries have awarded. You don't want to be tens of thousands or even hundreds of thousands of dollars short and have to pay for the damages out of pocket.

Claims

If a claim is made against your business, you will be notified. It is also important that you keep your coverage active at all times. The claims that are covered are those that are made during the policy period. If an incident occurred before you were covered, then your insurance most likely won't cover it. If you allow your policy to lapse and an incident occurs during that period, you will find that you will not be protected. Fortunately, you can pay a year at a time to avoid lapsed periods of time so that you are protected at all time.

Try not to be too alarmed when a claim is made against you, though. The person making the claim has to prove that you were liable. There are many times that individuals cannot prove the validity of their claim. If they do, know that you have the protection that you need to keep you from being financially liable for the damages. The only financial liability you should have is the premium that you pay the insurance company.

In the end, even if a claim is won against you, simply go on with your life and go on with your business. Unfortunately, a part of doing business is the claims that can be made against your business. Accidents do happen. You just have to make sure you are protected with professional liability insurance enough to deal with them.

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1

PROVIDE BUSINESS INFORMATION

Quotes tailored to your business needs


2

COMPARE YOUR QUOTES

Quick quotes from multiple carriers


3

SELECT & BUY THE RIGHT POLICY

Choose the right policy with a licensed agent

General Liability Insurance

Protecting Businesses Nationwide Since 1999