Do you ever wonder if lawsuits exist in the world of professionals? It does, and this is where professional liability insurance comes in. Professional liability insurance, also known as PLI, is a policy that covers and protects professionals like physicians, accountants, and lawyers against laxity and carelessness by their clients. Furthermore, this is a standalone policy because general liability insurance does not provide protection.
Misinterpretation, negligence, mistakes, or malpractices are covered by professional liability insurance. It is without a doubt that even experts and professionals in a specific field can come across careless clients, and they need access to protection from their clients’ claims if they pose a threat to their career or business in a negative way. Thus, this insurance is an ideal one to purchase.
How Does It Work?
As mentioned earlier, professional liability insurance is helpful in the protection of businesses against claims of negligence. Moreover, professionals in various fields—for instance, doctors, accountants, information technology specialists, architects, and many others—can use this type of insurance.
This insurance works when a person claims that your business made a mistake. This type of insurance will cover judgments, legal fees, and settlements. But this is up to your quote’s limit. For instance, if your client sues you for a mistake that caused him or her to lose money, your PLI will cover the settlement and legal costs.
It is worth noting that professional liability insurance is labeled differently based on the specific profession. For instance, for medical professionals, it is referred to as medical malpractice insurance. Also, it is imperative to file claims during the active period of your policy to ensure optimal coverage.
What Does it Cover?
This type of policy is known as errors and omissions insurance, and here are the kinds of claims that you get coverage for:
- Breach of contract.
- General professional misconduct.
- Misrepresentation.
- Inability to deliver a particular service on time.
- Errors.
- Professional negligence.
- Copyright infringement.
Anything other than these mentioned above will not be covered by this insurance policy.
What Does It Not Cover?
If you have purchased professional liability insurance and are curious about the things it does not cover, here is what you need to know:
- Business property damage.
- Employee injuries.
- Customer damages or injuries.
- Vehicle business use.
- Patents and trade.
- Employee discrimination lawsuits.
- Bodily injury.
- Fraud or criminal action.
- Illness.
If any of these happen, you cannot rely on your professional liability insurance policy.
Who Needs Professional Liability Insurance?
This is a fundamental question, and you must do your research thoroughly before you proceed to purchase. So, if you fall into any of these fields, then you should get this type of insurance for coverage:
- Content marketers.
- Tax preparers.
- Accountants.
- Insurance professionals.
- Consultants.
- Technology professionals.
- Engineers.
- Health care professionals.
- Real estate agents.
- Architects.
- Stockbrokers.
- Personal trainers.
- Graphic designers.
- Investment advisors.
- Counselors.
How Much Does It Cost?
The average cost of PL insurance is between $500 and $1,000 per year. However, the price can differ, and certain factors affect the cost. They include:
- What type of claim did you file?
- Common lawsuits in your field.
- Number of employees you have.
- How much coverage do you need?
- Location.
- How long have you been in business?
But it is advisable that, if you are looking for the cost of this insurance for your business, you get a quote.
How to Get Professional Liability Insurance
The application process required to get professional liability insurance is very easy. Follow the prompts below to begin:
- Find a reputable company that offers professional liability coverage.
- Do not conclude that the cheapest policy is the best.
- Figure out why you need the policy.
- Ask questions online or with a local agent.
- Select the coverage amount of your preference.
- Choose the suitable coverage for your current situation.
Complete the online insurance application process to start a quote and file a claim anytime you want. Besides, you can access affordable plans that match your budget and get the perfect coverage.
The Best Professional Liability Insurance Companies
Getting the best professional liability insurance quote is not that hard. The same goes for finding the perfect provider. So, if you need some ideas on the company to shop for a good professional liability insurance policy, here are a few I will suggest to you:
- Preferra Insurance Company.
- Hiscox Insurance.
- biBERK.
- Chubb.
- State Farm.
- AIG.
- The Hartford.
- Allstate.
- Coverys.
- The Doctors Company.
- Progressive.
- NEXT Insurance.
- Travelers.
- Liberty Mutual.
- Thimble.
- CAN.
- MCIC Vermont.
- Skyward Specialty Insurance.
- CFC Underwriting.
- MAG Mutual Insurance Company.
- Admiral Insurance Group.
- Great American.
- Arch Insurance America.
If you would like to get a quote from any of these companies, then you can check out the official website for more information.