Professional liability insurance comes in different forms with different names. Known well enough as liability coverage for professionals, professional liability insurance touches on a number of different industries. Depending on the industry someone is in it may be called Errors and Omissions Insurance, Indemnity Insurance or Malpractice Insurance.
Going through professional liability insurance, a company seeking to cover their reputation, assets, and overall job security should look into the particulars of the insurance they are interested in. When clients and customers attempt to sue someone over errors in their work, professional liability provides lawsuit protection for those insured. Professional liability insurance can protect a business or individual being sued even if they hadn’t made a mistake.
Naming the Difference
As mentioned above, professional liability insurance has different naming conventions what it comes to the separate industries it serves. Doctor and lawyers call is malpractice insurance; IT professionals and real estate agents typically call it errors and omissions; and consultants, architects, and engineers usually call it professional liability insurance. No matter the name of the coverage, what’s important is how these policies cover against professional lawsuits.
Seeing the Difference
Professional liability insurance may carry different names, but for the most part it covers the same type of risks. These risks are attributed to professional mistakes made during the service to clients. IT professionals should focus on the risks surrounding data liabilities; architects worry about everything to do with building spaces and the foundations they’re built on; and doctors face major concerns over misdiagnoses and mistakes made during things like operations.
In some cases, professional liability coverage also includes a cybersecurity component, protecting businesses and individuals against sensitive data breaches, computer hacking, and employee error.
From doctors to engineers, architects to lawyers, having this insurance can cover against lawsuits if clients bring allegations against the insured.
Professional Liability vs. General Liability
Other insurance policies can offer different coverages including general liability insurance. This kind of coverage is meant to take care of third-party lawsuits about injuries and property damage. Unfortunately for IT professionals this kind of coverage can’t protect against lawsuits.
General and professional liability are two contrasting coverages, not meant to be confused. Professional liability insurance offers full protection against lawsuits from clients, especially if there’s a financial loss to regain.
About Walker & Associates
At Walker & Associates Insurance, we have been a leader in helping to protect businesses and families since 1960. Our coverages are written to cover your business inside out. For more information, we invite you contact us today at (800) 213-7126.