Professional Liability Insurance

What Professional Liability Insurance Covers

There are over 100 million court cases are filed every year. Of these 100 million, 20 million are civil suits. When you are in business the chance that you will be at the receiving end of that 100 million at one point or another is relatively high.

This is where the liability portion of your business comes into play. Professional liability coverage is essential protection against being sued whether it was your fault or not.

What Liability Insurance Covers

Liability insurance basically covers negligence. If you or one of your employees is perceived as negligent, you are open to a lawsuit. If someone sues, then the liability insurance may settle the claim. It covers most things that like malpractice or errors not covered by general liability insurance.

Who Needs Professional Liability Coverage?

Anyone in business can use liability coverage but certain professions are particularly vulnerable. Professions that rely on strict contracts like lawyers, consultants, and realtors need professional liability. Also, businesses and employees in a profession with a possible unpleasant outcome, such as doctors and healthcare workers, need this type of coverage. In their case, it is called malpractice insurance.

We live in a litigious society. Lawsuits are more common than you would expect. It is important for a business to have this insurance to protect them against both justified and frivolous lawsuits.