10 Reasons You Should Have Professional Liability Insurance

Professional Liability coverage, sometimes referred to as malpractice or error and omissions insurance, is designed to protect professionals against claims that may involve negligence, misrepresentation, or violation of good faith. While we tend to view malpractice insurance as being medical related, it is important in a variety of fields.

Here are ten reasons you should have Professional Liability coverage:

1. We live in an extremely litigious society. Lawsuits can be filed without merit. In some cases, legal claims are filed in an effort to get a settlement without having a case go to court. The problem is if a claim is filed against you, you may still have to deal with the legal costs associated with your case. Professional Liability insurance would cover those expenses.
2. Even if you work for a company, you could still be held accountable.Just because you perform duties at a medical clinic, legal office, or elsewhere, doesn’t exclude you from being sued individually. In many cases, those seeking financial compensation will sue multiple parties and individuals may not be fully covered under a corporate policy.
3. It can protect your income.A lawsuit can be time-consuming, potentially taking you away from your work for long periods of time. This can severely impact your ability to earn a living. Professional Liability Insurance can help protect your income, paying you for wages lost while defending yourself.
4. It can protect your good name. When facing a professional liability claim, significant damage can be done to a professional’s reputation. Having Professional Liability coverage demonstrates that you place value on your good name and are prepared to defend it.
5. Mistakes happen. One of the most important aspects of having Professional Liability insurance is that errors and mistakes can happen. As long as errors are unintentional and there was no criminal intent these mistakes will be covered under personal liability insurance.
6. Professional Liability coverage will cover settlements.Even if a case doesn’t go to court, Professional Liability insurance will pay the costs of any out of court settlement that may be reached.
7. It can cover a wide range of professional services.Professional Liability coverage is valuable coverage in a wide range of fields. It can cover computer technicians from loss of data in the performance of their duties and it can protect real estate professionals from errors and omissions in their work. It can also cover legal professionals and those who offer financial advice. Just about anyone who directly interacts with customers can benefit from professional liability coverage.
8. It can cover a variety of claims.Professional Liability coverage will protect the insured in a variety of claims including negligence, misrepresentations, in the case that inaccurate advice was given, and even failing to act in good faith.
9. It can cover breaches of privacy.Today, professionals are entrusted with more of their client’s personal information than ever before. Should there be a breach of this information, legal action could take place. With Professional Liability coverage, it can protect you from any claims resulting from such a breach.
10. It provides peace of mind.Even the most cautious and diligent among us can find ourselves subject to a liability claim. Having appropriate coverage can help provide peace of mind and allow us to better serve our clients.

To learn more about Professional Liability coverage, please contact us at SIP Risk Insurance. We have the team to assess your risk profile and ensure you get the right amount of coverage.