What is Professional Liability Insurance?

Those employed in professional roles are generally expected to apply their expertise correctly, and they may be held financially responsible should they fail to do so. Professional liability insurance helps protect professionals from certain liability lawsuits and claims related to alleged mistakes that they make.

Professional liability insurance policies are specialized commercial liability policies. As a form of liability protection, these policies typically cover legal costs, settlements and some other expenses that arise from covered lawsuits and claims.

Who Needs a Professional Liability Policy?

Most people who are employed in a professional capacity ought to consider purchasing a professional liability policy. In certain situations, people in professional capacities might even be legally required to be covered by a policy.

Some examples of professionals who might want or need a policy include:

  • Medical professionals (e.g. doctors, nurses, physician assistants etc.)
  • Legal professionals (e.g. lawyers, paralegals, etc.)
  • Builders (e.g. contractors, engineers, architects, etc.)
  • Advisors (e.g. investment advisors, financial planners, etc.)
  • Real estate professionals (e.g. agents, brokers, etc.)
  • Insurance professionals (e.g. agents, brokers, etc.)
  • Tradespeople (e.g. plumbers, carpenters, landscapers, pool service providers, etc.)

Anyone who is sure whether they’d benefit from having a policy in place should talk with an insurance agent who’s familiar with these policies. An informed agent will be able to explain how a policy may help in a given situation.

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Do Employers Offer Professional Liability Coverage to Employees?

Many employers who have professionals working for them provide some professional liability coverage for their employees. Before professionals rely solely on this coverage, though, there are a couple nuances that they should be aware of.

Not all employers have professional liability coverage in place, and those that do sometimes have only a minimal amount of coverage. Professionals who are unsure whether their employer carries the amount of coverage they want should ask for details regarding the company’s professional liability policy. The provided details can then be reviewed with an experienced insurance agent.

Even when employers do carry robust coverage, there are often still limits on what incidents that coverage applies to. Namely, work that’s not done for the employer frequently isn’t covered by an employer’s policy. Thus, professionals who take on side gigs or offer charities pro bono work might not have coverage for those efforts.

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Are There Different Kinds of Professional Liability Policies?

Since professional liability policies are used by many different professionals, there are several different kinds of these policies. A few of the more common ones are:

  • Medical Malpractice Policies, which medical professionals normally use

  • Legal Malpractice Policies, which legal professionals normally use

  • Errors and Omissions Policies, which professionals who give advice normally use

  • Directors and Officers Policies, which executives and leaders normally use

Do Commercial Package Policies Include Professional Liability Coverage?

Commercial package policies usually combine several coverages together into a single package policy, and professional liability coverage is often one of the options that they make available. For professionals who need multiple insurance coverages, this option frequently makes sense. It also sometimes comes with substantial premium savings. Professionals who need only professional liability coverage normally stay with a stand-alone policy.

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How Can Professionals Find Professional Liability Insurance?

For help finding professional liability insurance, contact the independent insurance agents at World Insurance Associates. Our agents have the expertise necessary to recommend coverage options based on your situation, and they can compare policies from several different insurance companies to get you the best available one. With their assistance, you can be confident in the professional liability policy that you choose.

Meet Your Industry Specialist

Jeff Kroeger

Principal, Senior Vice President, and Head of Commercial Lines, Mr. Kroeger also manages the company's hospitality book of business and is that unit's primary producer. He is a graduate of Montclair State University and was named a 2015 Young Gun Insurance Business America.

Jeff has been providing exceptional insurance for restaurants, bars, nightclubs, and more for many years. He understands the unique challenges this industry faces and delivers the right coverage at an affordable price.

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If you want great value with professional expertise, you've come to the right place.

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