Providing a professional service is a profitable business. However, like all other ventures, it comes with a risk. No matter what industry you belong in, you should consider protecting yourself from costly legal fees and a damaged reputation. Getting insurance is one solution, but there are many kinds out there. Opting for professional liability insurance may be the key to this situation.
Professional liability insurance is a type of coverage designed to protect individuals and businesses from the financial costs associated with claims of negligence or malpractice. It pays for claims stemming from errors or omissions that a professional commits during their work.
This article will discuss the advantages of getting this type of insurance and the most common professions that can benefit from it. Read on to decide if professional liability insurance is right for you.
Professional Liability Insurance vs. Other Insurance
Professional liability insurance differs from other insurance in several ways. It differs from liability insurance, which covers property damage and bodily injury claims. Also, it differs from workers’ compensation insurance, which covers injuries sustained in the workplace.
Professional liability insurance can also be tailored to specific professions or industries. It allows a more customized policy to cover claims arising from a profession’s activities. This coverage can provide an invaluable layer of protection for individuals and businesses in high-risk occupations.
Businesses That Need Professional Liability Insurance
Almost all professionals – from lawyers and accountants to doctors and consultants – can benefit from professional liability insurance. However, it can be most helpful for small business owners, who often lack the resources to defend themselves in the event of a lawsuit.
Below are several examples of professions that are typically covered by this type of insurance:
Accountants are responsible for preparing financial statements and other documents related to a company’s financial practices. Professional liability insurance can protect them from claims alleging incorrect advice or calculation errors.
Architects are responsible for designing buildings and ensuring the safety of the people using them. This insurance protects them from accusations of faulty designs or building code violations.
Similar to architects, engineers are responsible for designing structures and concepts to meet a particular set of criteria. Thus, professional liability insurance protects them from claims alleging design errors or improper engineering calculations.
They create programs and applications for computers, phones, and other devices. Professional liability insurance can help protect them from lawsuits regarding incorrect code or programming.
Lawyers provide legal counsel and advice to their clients. So, this type of insurance can protect them against allegations of incorrect advice or negligence in the representation of a client.
Real Estate Agents
They are responsible for marketing and selling homes and other properties. By opting for this insurance, they can be protected from lawsuits of misrepresentation or incorrect advice.
Financial advisors provide advice to their clients regarding investments and other financial matters. This is a crucial business that needs professional liability insurance.
These are just a few examples of businesses and individuals that can be protected by professional liability insurance. It is important to note that policies and coverage may vary from insurer to insurer, so it is essential to consult a qualified professional for more information.
If you’re looking for.design-build professional liability insurance, rely on Pascal Burke Insurance Brokerage Inc. We specialize in various policies, from general cases to specialty contractors. Call us today, and let’s get you insured!