What Is Professional Liability Insurance?

Share:    

Professionals like doctors, lawyers and accountants are bound to provide service according to high quality standards set in their respective fields

. Mistakes occur in each and every profession but if the service or treatment provided causes damages of financial loss, then the client or patient will at a huge loss. Legal fee and compensation are very high and only professional malpractice insurance can cover such a risk to a certain amount. Nowadays, lawsuits are filed against professionals, especially doctors and lawyers for malpractice. Due to this most of the clients or patients who approach for professional advice or treatment are aware of their legal rights. Hence professionals need to ensure that they are properly covered under professional malpractice insurance.

When professional malpractice insurance is taken by a professional or when it is taken by a firm or institute, it is beneficial to the insured as well as the client or patient who files a lawsuit. The insured can protect his personal assets when he or she is sued and the insurance company will arrange an attorney for the plaintiff and also pay any compensation if involved. On the other hand, the client or patient who approaches a professional to receive quality service or treatment can be assured of compensation when he files a lawsuit and if the judgment is in his favor. Certain states have made it mandatory for professionals, especially doctors to take professional malpractice insurance.

Every profession involves risk and it can be avoided totally but it can be covered to some extent. Be it life of a person or a profession, insurance plays a very important role in covering the risk involved. It's imperative to buy professional malpractice insurance from a trusted insurance company. While choosing to purchase a policy make sure if legal expenses will also be covered along with it. Your policy limit should be confirmed with the insurer and find out if there any deductibles or exclusions. The insured should also know under what circumstances the policy will get terminated. Any other doubts should be clarified with the insurance company before making a purchase.

There are various types of professional malpractice insurance. The professional health care provider, lawyer or accountant should decide what kind of insurance will be suitable for his profession. Insurance coverage for a professional will end when the policy expires and the risk involved in profession will be covered only till the policy comes to an end. This is called claims made policy. Another type is occurrence professional malpractice insurance wherein the professional is protected even after the policy expires, provided the event happened during the period when the policy was active. Buying an insurance policy that will cover the risk involved in your profession is of utmost importance. Decision to purchase a policy should not be made in haste as you are putting in your hard earned money in buying one.

by: Sunil Punjabi

POST COMMENT

Points To Facilitate Product Liability Insurance As Your Uphold Plan How To Achieve World Class Pump Reliability A Variance In Test Results Indicates Unreliability Airlines Liability In Times Of Natural Calamities Wholesale Distributors Insurance And Liability Issues Arrangement of LLC: Arranging a limited Liability Company Important to sign up for a business liability insurance How To Fix your Office Database Is Damaged.. Entourage Error? How To Get Cheap Texas Liability Insurance What Is Professional Liability Insurance? General Liability Insurance Some Information About Product Liability Insurance Tips For Setting Up A Home Office For Your Real Estate Business