Types Of Professional Liability Insurance

Types Of Professional Liability Insurance Many business professionals may want to take out some form of insurance to guard against lawsuits that they may not be able to afford. There are several types of professional liability insurance that many companies offer to protect medical practitioners, accountants, contractors, or just about any businessman or woman who comes in contact with the general public on a regular basis. Often professional liability is taken out as an extra precaution, to cover what standard liability may not. Some forms of professional liability insurance may include medical malpractice or error and omission insurance.

Medical malpractice insurance is primarily set up to protect a medical practitioner against negligence claims. Even if a claim turns out to be groundless, the practitioner will have to spend money to defend himself. Medical malpractice can refer to a mistake that caused a patient bodily harm or additional pain or injury, or it can apply to a case where a doctors disregard of medical protocol negatively affected a patient. The proper insurance can help the doctor pay for his own lawyer, patient compensation, and any additional damages as well. Most professionals in the medical field have some form of medical malpractice insurance.

Another form of professional liability insurance, often needed in occupations that require handling money on a regular basis such as accounting or brokerage, is error and omission insurance. This form of insurance is used to protect against claims that deal with financial errors. Any mistake on behalf of the service provider that causes the client to lose money can be brought to court. This form of insurance, however, is not exclusive to bankers or brokers; if an architects mistake causes a roof to collapse, the homeowner can sue for compensation of the cost to repair any damages. However, standard professional liability insurance can often cover these types of claims, and additional error and omission insurance is not usually necessary.

These are the most common forms of professional liability insurance. This coverage should be purchased in addition to general liability insurance for those who may not be completely covered with standard insurance. Although it may seem like an unnecessary expense when it is first purchased many people believe they will not make mistakes, whether on paper or in person it is always good to be prepared for any eventuality. Even the most thorough accountant can misread a number. Many businesses offer this insurance to their employees; and even if they do not, it can be purchased privately so that every professional practitioner can be protected. Whether that includes malpractice, professional, or error and omission insurance, any lawyer will agree that it is better to spend a little extra now to be protected in the future.

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