Businesses That Perform a Service Need Professional Liability Insurance

Written By: Mike Davis on November 5, 2011 No Comment

by Caressa Waechter

All businesses will have some type of professional liability insurance for claims made by clients. Most of these claims have something to do with negligence. Accountants, physicians, architects and lawyers all will have a high level of liability insurance. You may be aware of physicians liability insurance as it is called malpractice insurance. Real estate companies will have a type of errors and omissions insurance.

Most liability insurance has claims filed pertaining for omission of products, financial loss because of error, breach of warranty, security, intellectual property, personal injury and a failure to perform. Some other claims deal with inaccurate advices, misrepresentation, violation of good faith and fair dealing and negligence. A general professional liability insurance will cover personal injury, advertising injury, bodily injury, and property damage.

It is expected that when you go to a professional for a specific service they will be an expert in their field. Things do occur when that professional does not perform to their highest standard and then someone gets hurt in some way or suffers a loss, usually financially. There is professional liability insurance coverage for most businesses.

When choosing professional liability insurance providers you will need to determine what coverage is offered under each policy. There are different areas and coverage from criminal, administrative and civil policies. You can easily find information on professional liability insurance providers by using the Internet. Another important factor is the type of service they provide and the claim filing procedures and well as who makes decisions about claims, how long it takes for the entire claim process to be completed, how you obtain legal defense and more.

Many times it is the company that is sued and not the individual that made the mistake, though there will be consequences for that individual. Many times the person claiming the injury may have made the claim but cannot substantiate it. You need to realize that in any business the business will do what is necessary for the business to succeed and if that means sacrificing an employee then they will hand you your pink slip.

About the Author:

A professional liability insurance company is where you would obtain error and omissions insurance.