what is professional liability insurance?
You might have heard of all sorts of insurance, from health, life, car, financial, and what not. They come in very handy in cases where untoward or unwanted events occur such as sickness, untimely death, damage to vehicle due to accident, business slow down among many others. But there is another kind of insurance directed specifically to various professionals called “Professional Liability Insurance”.
It is otherwise known as E&O insurance, or the errors and omissions insurance and is entirely different from a general liability insurance that offers only limited coverage. There are cases where claimants can make it appear that you have become negligent even though in reality you did not, it could cost you a big sum of money. What the professional liability insurance does is it protects you against a claim due to negligence in advising or performing a specific type of service.
Some of the most common professionals that can take benefit from this kind of insurance policy are teachers, nurses, contractors, consultants, web designers, and all other professions who are into giving advice or rendering professional services.
For example, a patient who felt like the care provided by the nurse is substandard or lacking and didn’t even like the services given may want to sue the nurse in question. For consultants, an advice deemed to be a bad one, especially if it causes great losses in terms of finances to a firm or an individual may bring the issue to court and demand for reimbursement.
Nothing is foolproof when it comes to human errors. And should you make any mistake that is seriously costly, having professional liability insurance should help cover the funding for the costs incurred if ever the litigation battle has been lost. So basically, it is also a way of securing yourself and your business’ future in terms of financial stability.
It contributes to peace of mind knowing that you are well covered for any possible litigation against you for any costly error that may occur while rendering professional services. Plus the fact that it is always better to be prepared than not with all the surprises that life has to offer.
Lastly, when choosing an insurance provider, make sure that you did get the chance to check out others so you can compare prices and their offerings. Paying a little extra for better coverage is always a smart move than compromising your insurance by settling with cheaper ones with non-solid provisions just to cut down on costs.