What You Need to Know about Professional Liability Insurance
by Arina Smith Insurance 24 January 2018
Being in business for yourself, whether as a freelance consultant, personal fitness trainer or owner of a small to medium sized business is tough. However, there is little point in putting in all that effort just to have the rug pulled out from under you in the event of an unforeseen event which could, ultimately put you out of business – that’s why making sure you have the right insurance as a safety net is vital!
Professional liability insurance is not the same as general liability insurance. The latter refers to the policy that most professionals have in the event that they suffer from personal injury or even property damage while they are running the business. Professional liability on the other hand refers to the insurance covering actions, mistakes and advice made by the professionals themselves. For instance, if you claim to be an expert in fitness but your client ended up with serious health issues, you could be sued. Hence, this insurance will protect you.
There are several industries in which this insurance could be useful. Doctors and lawyers are the biggest clients of this type of insurance as they are commonly sued for malpractice. They even have a specific type of insurance called malpractice insurance. Other professionals are architects, finance advisers, personal trainers, yoga instructors, contractors, engineers, and real estate brokers. If the nature of your job is to provide advice, consultation or ideas, you can’t guarantee perfect results. Hence, this insurance could help you. You can check out Next-Insurance.com for more details.
The importance of professional liability insurance:
It is not easy going through the process of being sued. You need to respond to it. In doing so, you have paperwork filing fees that must be paid along with the legal costs. The damages might also cost a lot and you have to pay the client if ever they win the case. All of these details can be covered in the insurance. Hence, the impact becomes less. You won’t have to think about where to get the money to pay for the damages with this insurance.
Criminal prosecution is not included:
However, if the problem ends with a criminal investigation, this type of insurance won’t apply. It is only good for civil suits. Cyber liability is also not included. There is a different insurance policy if you wish to be protected in this regard.
You and your company are protected:
Your company can benefit from this type of policy. When someone sues the company, you are assured that the insurance will be of help. What if the client goes after you? In this case, the insurance policy would also be of help.
Just go online:
If you are interested in getting this insurance, you don’t have to look elsewhere. You can just go online and you will find the right insurance policy for your needs. You need to understand the cost of the insurance and what it will specifically cover. If you are fine with the terms and conditions, you can take the policy out and start paying the premiums.