What is it?
Who needs it?
What is Professional Liability Insurance?
Professionals are hired to apply their expertise, and clients expect them to do so correctly. Should a California professional make a mistake, professional liability insurance might help cover the resulting consequences.
Professional liability insurance is specialized commercial insurance for professionals. As is true with most liability protections, the coverage often pays legal costs and settlements arising from covered lawsuits.
Who in California should carry Professional Liability Coverage?
Most people who offer professional services in California ought to have professional liability coverage in place. The insurance may be useful to:
- Legal Professionals (e.g. attorneys, paralegals)
- Financial Professionals (e.g. financial planners, investment advisors)
- Tax Professionals (e.g. CPAs, accountants, bookkeepers)
- Real Estate Professionals (e.g. brokers, brokers)
- Insurance Professionals (e.g. brokers, brokers)
- Construction Professionals (e.g. engineers, architects, builders)
- Trade Professionals (e.g. electricians, plumbers, carpenters, landscapers)
Those in construction and trades sometimes need professional liability specifically for when they give customers advice. Other liability risks may be managed by other policies.
An insurance broker who specializes in professional liability coverage can help construction and trade professionals (and others) make sure the policy they choose adequately covers their risk exposure.
What is Medical Malpractice Insurance?
Medical malpractice insurance is a form of professional liability coverage that’s specifically for those in the medical field. State laws typically mandate that doctors have insurance, and mid-level providers might want/need coverage too. Policies are even available for low-level providers when needed.
What is Legal Malpractice Insurance?
Legal malpractice insurance is similar to medical malpractice, in that it provides specialized coverage for certain professionals. Legal malpractice may be purchased by law firms, attorneys, paralegals and others who practice law.
What is Directors and Officers Insurance?
Directors and officers insurance (D&O insurance) is professional liability coverage for leaders of organizations. Leaders of both businesses and nonprofit organizations might want the coverage.
What is Errors and Omissions Insurance?
Errors and omissions insurance (E&O insurance) is primarily for professionals who offer advice, rather than those who practice a skill. Legal malpractice is often a specialized type of E&O, and it may also be useful to financial, real estate and insurance professionals.
Do employers provide Professional Liability Coverage for their employees?
Businesses that employ professionals frequently provide professional liability coverage, so long as the professionals are traditional employees. Those who are hired on as contractors receive employer-provided coverage less frequently.
Before relying solely on an employer’s coverage, professionals should first consider whether their employer offers enough protection. Professionals should also discuss what would happen if multiple employees filed claims against the same employer policy. A knowledgeable insurance broker can help think through these issues and make sure enough protection is in place.
How can professionals in California get Professional Liability Insurance?
For assistance with professional liability insurance in California, contact the independent insurance brokers at Heffernan Walton Insurance. Our brokers are well-versed in the various types of professional liability policies, and we’ll make sure you find one that provides the protections you need. With our expert assistance, you can be confident in the policy that you ultimately select.