Even the most dedicated professional can become the target of an unsatisfied client or patient. Professional liability insurance is necessary to protect your business or practice from the litigious pitfalls that you may encounter in your business.
Medical malpractice insurance is professional liability insurance for medical professionals. In past decades the need - and cost - of medical malpractice insurance has made it an integral part of costing out a successful practice. Med mal awards have made even practicing medicine difficult for small practitioners. It is imperative to have a carrier who will rigorously defend your business in all claims, in an effort to ensure that your practice may continue to thrive.
Most other professionals, such as contractors, internet freelance designers, brokers and the like, carry insurance known as Errors & Omissions insurance. E&O operates the same as medical malpractice, insuring your business against claims that may arise from the day-to-day performance of the job. Since many of the industries covered by E&O insurance may incur claims without triggering coverage by general liability insurance for bodily harm or physical damages, it is necessary to carry adequate professional liability insurance to help protect your business. Claims of negligence, breach of contract or violation of good-faith practices could result in substantial losses for clients, who often try to recoup those losses through claims against contracted service providers. This is where the professional liability insurance carrier becomes involved to help defend against such claims, and to bear the brunt of the expense for damages.
Since the provider only covers to the maximum benefit of each policy, it is important to thoroughly research the history of claims and awards in your industry. Like any shrewd business decision, selecting a carrier and policy limits for you professional liability insurance carrier should not be a choice made in a vacuum. Much of the research for the decision can be made on-line at a time that is convenient for you. Once you have determined the parameters for your coverage, you can begin to evaluate which insurance carrier works best with your business model and field.
Selecting professional liability insurance is one of the most important aspects of any successful business. No matter how well you think you have prepared for the future of your business, there is no way to be certain what lies ahead. It is crucial to protect your business, your livelihood and your investment with insurance designed to fight for you in these inopportune situations. Focus on growing your business, and allow your carrier to protect your time and investment.