Choosing the Right Professional Liability Coverage

In your business, you are looked upon as a professional expert. Because of this, you are expected to protect and inform your clients by utilizing the full extent of your professional knowledge. Unfortunately, there are times when errors or omissions may occur that mean you failed to uphold reasonable expectations for a professional at your level. These mistakes and omissions could expose you to a lawsuit for any damages that they cause. Professional liability coverage protects you from these liabilities, but you need to decide which type is right for you.

Medical professional liability (also called malpractice insurance): If you act in a professional capacity in the medical industry, then this insurance is appropriate for you. But medical professional liability isn’t just for doctors, nurses and dentists. It is also an appropriate coverage for physical therapists, surgeons, ophthalmologists, medical institutions, and others. It can cover you if you fail to administer a treatment that you should have, if you perform a medical act poorly, if you use poor judgment when diagnosing or treating someone, if you fail to inform a patient about possible side effects or alternative treatments, and other insurable incidents. Some medical facilities may not allow you to work out of their building if you do not carry this coverage.

Errors and omissions insurance: Those in the financial industry will find that errors and omission (also called E&O) insurance is best for their liabilities. Errors and omissions insurance covers liabilities that stem from errors in completing paperwork, issuing insurance policies, setting up financial institution accounts, executing trades and changes, and accidentally omitting to tell the client about certain exceptions, risks, etc. Other professionals such as architects, attorneys, notaries and engineers can also benefit from this insurance. E&O acts as a sort of catch all for professionals that work outside the medical community, so most professionals will find this suitable.

It is important to remember that professional liability coverage does not cover bodily injuries or property damage liabilities for the named professional. It is only meant to cover the insured in the event that he or she fails to act up to the expected standard of his or her profession. In addition, it covers the insured when he or she is acting in a professional capacity only, so if you are sued personally for advice or action that falls below your profession’s standards, the insurance policy will likely not cover the claim.

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