Protect Your Most Valuable Assets Through Professional Liability Insurance
Professional Liability Insurance is sometimes called ‘Medical Malpractice Coverage’ or ‘Errors and Omissions Coverage’. It varies with the covered profession. It is designed to work for professional individuals. Said professionals might come under fire if their service, product or advice ends up harming the client in some manner. Therefore, this insurance protects the professionals against negligence, or other similar claims made by disgruntled clients.
Sometimes a client might suffer damages as a result of the services received from a professional individual. Whether directly or indirectly does not matter. The fallout might result in a lawsuit which ends-up incurring substantial restitution costs. You must take an insurance for this possibility. It will allow you to not bear the full cost of damages awarded in the lawsuit.
Standard Coverage protects professionals against negligence or other similar claims made by disgruntled clients. This protection remains in effect for the duration of the policy. The policy provides coverage for many reasons of client disgruntlement, such as human error, omission or neglect etc.
Professional Liability Insurance is a separate Coverage policy. It does not fall under the Home Owner’s Endorsements, Home-Based Business Policies, or Business Owner’s Policies. This is a unique form of coverage with its own distinct parameters. Generally, it is used on a claim-made basis. Therefore, it only provides coverage for claims made during the policy. Hence, any incidents or claims made before the buying date will not be covered by it. But there is a possibility for the policy to have a retroactive date.
Exclusions in a Professional Liability Insurance
This Policy does not provide protection against criminal prosecution. Under the Civil Law, it does not cover any form of Legal Liability either.
The basic policy might not have an automatic inclusion in regards to the latest issues. Such as any violation in cyber laws, data breaching or any other such tech-based issue. The inclusion of such possibilities in the policy is done. However, it is generally done separately.
Wording of a Professional Liability Insurance
There are many ways of wording a professional policy. It mainly depends on the ones who design and offer it. Majority of the policies are typically designed to satisfy a minimum approved wording. This makes the comparison easier.
There are some other insurance policies which provide a partially different form of coverage. For example, they might include a breach of duty clause. This causes the agreement to become null and void.
Note: Acquire the Best Professional Liability Insurance Near Me
The wording of an insurance policy needs to be very precise. It must describe the various circumstances of its activation with clarity and detail. The language of a policy is difficult to understand for the individuals who do not have experience with corporate agreements. It is tough to understand and comprehend. Some people even jokingly say, ‘It reads like English, but it ain’t English’.
The wording is extremely important in defining the specifics of a policy. For instance, coverage for ‘negligent act, error or omission’ will provide policyholder with indemnification against losses incurred due to such acts. The modifier, ‘negligent’ in the agreement does not apply to all three categories. However, any non-legal reader might assume that it does. Meanwhile, a ‘negligent act, negligent error or negligent omission’ clause is a much more restrictive policy. The coverage would be denied in a lawsuit alleging a non-negligent error or omission.
Necessity of Professional Liability Insurance
Professional Liability Coverage are legally required in certain practices because of an inherent risk in them. There are many professions which have a high chance of risk for the client, such as surgery. Moreover, there are many unethical clients who like to sue professionals for the sole reason of gaining monetary compensation. Whole law firms are dedicated to gain maximum benefits out of a litigation. You need protection from getting swept away in such circumstances.
You might face some clientele who accuse you and your business falsely, for monetary or similar gain. Such legal actions turn out to be mere waste of money and resources. The coverage for defense costs is provided with insurance, in such cases.
General Liability Insurance is an excellent policy to protect your business interests. However, this policy is mainly designed to cover physical risks and property damage to your business premises or physical injuries. Professional Liability offers coverage for more abstract risks. In-between the both of them, your business can become very secure.
Usefulness of Professional Liability Insurance
You should utilize this service if your business;
- Provides a professional service
- Gives professional advice
- Legally required to acquire an E&O (Errors and Omissions) insurance
- Can suffer from a Civil Liability
- Has the possibility of culpability in Legal Malpractice
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Acquire the Best Professional Liability Insurance in Texas
SG Financial Inc. can provide you with the Best Insurance in Texas. We have proven ourselves as one of the best and honest in an industry which is rife with mistrust. It is our duty to provide swift insurance to individuals depending upon our services. We make it habit or responding to claims immediately and swiftly approve the legitimate claims. Save your business from dishonest litigation’s and disingenuous litigators. We are here for you.