A Deeper Look at Professional Liability Insurance

Even the Pros Make Mistakes

Every professional who advises, treats or diagnoses clients needs a professional liability insurance policy to protect themselves and their business practices from a lawsuit.

As their agent, it is important for you to guide these professionals so they know which policy is right for their business and the different risk exposures that they have. CID is here to help you do this.

What is Professional Liability Insurance?

This depends on the type of profession you are insuring. There are a variety of Professional Liability policies, each covering a different profession and the risks that they entail.

The policy itself protects against legal claims and lawsuits up to the selected policy's limits in the even a mistake is made, advice is given improperly or someone is treated incorrectly.

What are the Most Common Professional Liability Policies?

• Accountants Insurance
• Architects Insurance 
• Consultants Insurance
• Engineering Insurance 
• Lawyers Insurance
• Medical Malpractice Insurance 
• Mortgage Brokers Insurance
• Property Managers Insurance
• Real Estate Agencies Insurance
• Technology Insurance

What Does Professional Liability Insurance Cover?

There are a couple of different coverage types based on what the insured does and provides to their customers or clients.

• Malpractice insurance is coverage that’s specifically designed for medical professionals such as psychiatrists, podiatrists, and gynecologists. It protects against lawsuits that allege negligence or mistakes. If your insured works in the healthcare industry, malpractice insurance should be the first policy they obtain.
• Errors and Omissions Liability insurance, also known as E&O insurance, is coverage that’s designed for those who provide advice or services such as lawyers, consultants, insurance agents, and architects. It protects against lawsuits that claim a financial loss occurred based on bad information or negligent advice.

We partnered with our insurance carrier expert to create this recorded webinar covering all of the important information you need to know about Errors & Omissions coverage.

A lawsuit in the professional industry is not unheard of and in fact very common. Finding the right professional liability coverage for your insureds is essential.

There are two kinds of Professional Liability policy coverage types:

• A claims-made policy must be in effect both when the lawsuit is filed and when the incident in the suit took place. This type of policy is the most common, and is usually less expensive.
• An occurrence policy covers any incident that takes place during the coverage period, even if the actual lawsuit is filed after the policy expiration. This type of policy provides more comprehensive coverage and is higher priced.

It is important to help steer your insureds toward the right protection plan.

Why Your Insureds Should Buy Professional Liability Insurance

In most cases, if they work for a large company or clinic, it will have its own commercial general liability coverage in place. The company may have professional liability coverage as well. 

However, most company policies will provide coverage to the company and the owners in the event of a lawsuit. Any additional expenses due to your insureds' negligence or misadvise could be their responsibility. 

Not having the proper coverage for their business practices can be a costly mistake. Getting professional liability insurance is the quickest way to rectify any risk exposures beforehand.

In any lawsuit, no matter whether it ends up in court or settled prior to, it will be expensive to resolve. Professional liability insurance is designed to help protect your insureds from what could be a serious financial burden.

How Much Does Professional Liability Insurance Cost?

Whatever career path your insureds have chosen will come with a certain amount of risk. The more risk involved, the higher the insurance premiums. A policy for a neurosurgeon or anesthesiologist will be more costly than a professional liability policy for an independent insurance agent.

To get exact pricing specific to each profession, speak with our Professional Liability underwriter, Lexi Johnson. She will be able to find you the proper coverage and policy with optional limit levels and premiums. Her email is Lexi@cidinsurance.com.

Comparing Professional Liability Insurance Quotes

CID has access to multiple insurance carriers that can generate quotes for you to compare for your insureds to make sure they have the right protection in place. We can work with you to make certain their Professional Liability policy will have sufficient coverages to protect them and their livelihood.

Insurance policies can be complex. We strive to make it as easy as possible for you to simplify the process for your insureds. We will make sure your insureds get the right coverage that meet their unique needs.

Reach out to Lexi for a quote today. You can also find applications, educational videos and marketing materials on our website.