Professional liability insurance protects claims of either alleged or actual negligence which arises from giving professional services, such as giving wrong advice, an unintended omission, or failing to carry out a service properly. This policy also includes defense and medical costs up to the policy limits, even if there was no mistake made. It may also be purchased by professional indemnity insurance brokers who handle multiple insurance coverages for their clients. The best protection against potential litigation is to have this insurance. However, it’s not enough to protect your business – you must pay the right amount.
There are two major factors which influence the cost of your professional negligence insurance premium. Coverage and the period of time you’re allowed to seek coverage. There are some professions that have annual limit or lifetime limit of coverages while other professionals have lifetime coverage options. While you can find competitive premiums for annual limits or lifetime limits, most experts recommend going with a full coverage policy so you’re covered in case of any claim against you, irrespective of your professional status. For businesses, clients and suppliers, the more coverage you have, the greater protection they’ll have from potential litigation.
Most clients think they need professional liability insurance only when something goes wrong or when a client sues them for some type of negligence. In fact, professional service providers are often sued because their work exposes them to risks and legal issues. While many lawyers agree that it’s a good idea to protect yourself from potential lawsuits, they say you shouldn’t neglect protecting your reputation and good name from damage and loss. Some service providers even suggest getting it before you even open for business because it’s better to be safe than sorry. While some people feel that if they get sued they will be shielded from any financial responsibility, this isn’t necessarily true – if you’re sued, you could owe thousands of dollars in damages, which means you could lose your business and even your house if you’re unable to pay the claims.
There are three major types of professional insurance coverage, bodily injury, property damage and general liability. Bodily injury insurance is designed to pay for medical expenses and other expenses resulting from an on-the-job accident. Property damage and general liability coverage are designed to protect against property damage, which could include damage to real estate or personal property.
Business owners also need insurance policies to help cover client claims in the event that they’re injured while making repairs at their place of business. Without insurance, clients might not be able to afford to pay for their medical bills or repair costs, and this could ultimately result in a loss of business. Some insurance companies offer these types of policies, but others don’t, so it pays to shop around to find the best rates and the most comprehensive coverage. Having a professional liability coverage policy will help cover the costs of repair and any other losses the client claims.
Professional insurance is important for a wide variety of professionals. Insurance for contractors, roofers, electricians, plumbers and painters is particularly important because these are typically individuals who work in a potentially risky profession. It’s not uncommon for injuries to occur on job sites; slips and falls are unfortunately common even for professionals who take safety precautions such as wearing appropriate protective gear. Injuries can result from using inferior tools, poor techniques and not following safe work practices. When these types of negligence claims are brought to court, professional insurance can help protect the rights of the injured client and help them recoup the costs of medical bills, repair costs and other damages.
Professional insurance also helps protect your reputation and helps ensure you get ahead in your line of work. If clients feel that you aren’t serious about the job you do, they’ll begin to avoid your services. They may stop communicating with you or choose another contractor if they believe you aren’t taking care of yourself or your business. Some clients may even refuse to hire you altogether. It’s easy to see how an insurance policy can help protect your reputation and your earning potential.
Finding an affordable quote for professional liability policies is easier than ever with the help of the Internet. Most insurance companies and agents offer online quotes for their products. Simply access a site that lets you compare rates from several companies. You’ll be able to choose the policy with the best coverage that best fits your needs and provides you with the protection you need. Once you’ve found the right policy at the right price, you’ll be on your way to protecting yourself and your company from excessive litigation and financial losses.