Every Service Company Needs Professional Liability Insurance
Professional liability insurance is also called professional indemnity insurance and protects businesses against negligence claims made by clients. Physicians, accountants, lawyers and architects will all have some type of liability coverage. Physicians all have malpractice insurance and real estate appraisers, inspectors and brokers will all have errors and omissions insurance.
Liability insurance deals with a loss, usually financial or resulting in a financial mater, that is due to a breach in warranty, security, intellectual property, personal injury, omission of products, error and failure to perform. As with all liability insurance it will cover advertising injury, bodily injury, personal injury and property damage, though you can get policies that cover one of theses areas in particular. There are many reasons why a liability claim is requested but the most common are negligence, inaccurate advice, misrepresentation, and violation of good faith or fair dealing.
Professional liability insurance is used to protect clients from being taking advantage of. Clients go to experts because they have the knowledge that the client is lacking. When the expert does not provide work up to the high standards expected and the client takes the fall there is a system in place to make sure the client can do something about this.
When choosing an insurance provider you should compare several different companies and policies and make sure to read the fine print. It is possible to find information on professional liability insurers easily on line. Besides looking at cost and coverage you need to investigate how claims are processed, how long it takes to receive your claim, how legal issues are handled and more. The type of customer service offered is also important if you are going to be contacting that company a lot.
You also need to keep in mind that when you work for a company and when a company is being sued. The company will do what is best for the company and may ignore your personal needs. Even the government will have professional liability insurance.