Professional liability insurance is a type of coverage that is specifically designed to protect small business professionals, such as doctors, lawyers, accountants, or architects, from claims resulting from negligence, malpractice, errors, or misrepresentation. It will provide financial protection for the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. However, it does not extend to non-financial losses or losses caused by intentional or dishonest acts. Additionally, it does not include criminal prosecution or all forms of legal liability under civil law. Before purchasing a policy, it is important to consult with an attorney who is knowledgeable about professional liability insurance.
You can also find accident policies, which means that you have coverage if an incident occurred while you were covered, even if you let your policy expire and a customer files a claim against you after it has expired. The amount you pay for this type of insurance will depend on the area in which you practice, the field you are in, and the number of claims you have had against you. Typical professional liability policies compensate the insured for losses that arise from any claim or claim made during the policy period due to any error, omission, or covered negligent act committed in the course of the insured's professional activity during the policy period. If you're a small business owner, it is important to speak with an insurance agent to determine if you need coverage and how much coverage is necessary. It's essential coverage because mistakes can happen regardless of how careful or experienced a professional is. Insurance that covers data security and other technology-based security issues is available as a standalone policy.
Professional liability insurance policies are generally based on claims, meaning that the coverage is only valid for claims made and events that occur while the policy is active. Some policies may be expressed in a way that makes them easier to compare, while others may differ enough that what appears to be the same coverage is not. Professional liability insurance is specialized coverage that is not offered under homeowner guarantees, commercial home policies, or business owner policies.
