Everything You Need to Know About Professional Liability Insurance

In a professional environment, liability can arise due to several reasons. A doctor’s misdiagnosis, a lawyer’s malpractice, or an engineer’s frugal quality of construction can be a reason to be accused of a liability. As a professional, you can incur a professional liability due to the errors and omissions you made.

Professional liability insurance helps professionals bear the full repercussions of a liability or malpractice suit and can help them in reaching a settlement.

Even if you are an expert in your field of work, you might make mistakes at times. Your client can sue you if they feel that the errors made by you were detrimental to them. It is best to have professional liability insurance to help you in difficult situations. It will help you make up for your mistakes and will also make up for the loss incurred by your client.

Professional Liability Insurance – Things to Expect

Many people don’t know what they should expect from professional liability insurance. While looking for liability insurance for yourself or your firm, you should pay attention to minute details.

There are two types of liability insurance available:

Claims-Made Policy

In this policy, the insurance company establishes a retroactive date and does not cover the claims filed before this date. It is less expensive and needs to be renewed from time to time.

Occurrence Policy

An occurrence policy covers an incidence that occurs within the policy period. It does not matter how many years later, the claim is made. It is advantageous as it does not need to be renewed from time to time.

Things to Consider Before Getting Professional Liability Insurance

There are many insurance firms that offer liability insurance. While considering professional liability insurance, check the details for yourself. Keep the following things in mind before committing to a policy:

Premium and Sum Ensured

New professionals commonly make mistakes of purchasing policies way beyond their budget. It is essential to make sure your premium doesn’t take away too much from your pocket.

Extended Reporting Period Endorsement

An additional premium, known as extended reporting period endorsement allows you to report a claim to your previous insurance company.

This would be helpful if you switched your claims-made policy from one insurance company to another.

Prior Acts Coverage

The prior act’s coverage provides you immunity against claims arising out of incidents that occurred before the retroactive date of inception of the policy.

Purchasing professional liability insurance is an important decision. Contact the experts at Pittman Insurance Group if you need a risk-free assessment and affordable quote. We always look forward to guiding you in the right direction.

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