Professional liability insurance is a type of coverage that is specifically designed for experts who are in the business of dispensing advice to their clients. It’s also referred to as Errors and Omissions or E&O. It is not the kind that you can sign up for additional coverage with your life, health, or home policy. Simply put, it is a policy that you have to purchase all on its own.
Not everyone will need this type of coverage though. Overall, it is up to the individual to decide whether he or she needs this kind of protection. Doctors and lawyers will definitely benefit from this type of guarantee as they are considered certified authorities in their respective areas of specializations.
Professionals basically require this type of protection because of what is expected from them. They are called professionals in the first place because they are considered to have specialized knowledge and skills in their areas of expertise. It is for this reason that people pay to have their advice.
Most often than not, there are rules set by professional associations as well as the government that licensed members of a particular practice are expected to adhere to. It is when these professionals fail to comply with such rules that they can be held liable for their words or actions. If they are proven liable, of course, there will be legal and oftentimes financial consequences that will have to be met.
For instance, medical professionals provide qualified advice to patients. Patients, however, may choose to sue their doctors if they feel that the latter had given them inappropriate advice by omission, error, or negligence. The same can be said for lawyers giving legal aid to their clients. If, for instance, a client ends up losing in court, he may sue his own legal counsel if he believes that the latter had given him inappropriate guidance.
If, however, you as a professional have duly signed up and paid for this type of coverage, then your policy provider may be able to partially or completely cover your expenses should you happen to get sued. Depending on the terms and conditions of your policy, your insurer may pay for the costs of having legal counsel. Your provider may even pay for the damages that the court has required you to settle with your client.
As with all other policies, there are different plans and rates for this type of protection. Be sure to discuss all options open to you with an agent. This way, you’ll have the kind of professional liability insurance that’s truly guaranteed to cover you from every possible angle.