What Is Professional Liability Insurance?

Professionals earn their living by properly applying their expertise, and clients expect them to not make mistakes when hired. Should a professional make a mistake, they might be held financially liable for any negative effects that the error has. Professional liability insurance policies help Massachusetts professionals shield themselves from some claims and lawsuits that clients could file if they ever made an error while working.

Professional liability insurance is a specialized type of commercial liability coverage that helps mitigate the risks professional workers face. Being a liability coverage, most policies help pay any legal fees, settlements or judgements associated with covered claims. In many cases, policies will even help pay legal fees before a covered claim is resolved.

What Professionals in Massachusetts Need a Professional Liability Policy?

Many professionals in Massachusetts who make recommendations to clients can benefit from the protections set forth in professional liability policies. Some examples of specific professionals who might need or want coverage include:

• Attorneys and other legal professionals
• Doctors, nurses and other medical providers
• Financial advisors and insurance agents
• Real estate brokers and agents
• Architects and engineers

In some cases, even tradespeople may want a policy. For example, an electrician or plumber might want coverage if they give mistaken advice that leads to substantial property damage. Some policies may offer protection in such a situation.

What Is Medical Malpractice Insurance?

Medical malpractice insurance is a form of professional liability coverage that generally insures people working in the medical profession. Doctors, nurses, physician assistants, paramedics and other medical providers might need this particular type of policy.

What Is Errors and Omissions Insurance?

Errors and omissions insurance is the type of professional liability policy that’s commonly used to insure people who give advice. Lawyers, financial advisors, insurance agents and real estate agents might purchase this particular policy.

Professionals who are unsure whether they should get an errors and omissions policy should speak with an insurance agent who specializes in professional liability coverage. An informed agent will be able to determine whether this or another form of coverage makes sense in a given situation.

Can Professionals Get Professional Liability Coverage Through Their Employer?

Professionals who are employees of a company might receive professional liability coverage through a policy that their employer carries. Not all employers carry professional liability policies, though, and there are limits on the coverage provided even when employers do.

Namely, employer-sponsored policies are subject to the coverages and limits that employers select. These are sometimes different from what professionals would like to have in place.

Additionally, employer-sponsored policies generally don’t cover side or pro bono work. If professionals do any consulting or charitable work without procuring their own policy, they may be leaving themselves exposed to unnecessary risk.

Professionals can address each of these issues by purchasing their own policy even if their employer offers coverage. A professional’s own policy can usually be adapted to provide desired coverages and cover the various work a professional does.

Are Professional Liability Policies Expensive?

There is a lot of variance among professional liability policy premiums because these policies are used to insure many different workers. Even with the variance, however, policies tend to be quite affordable considering the protections they provide. Facing a major claim without any protection in place can be extremely expensive.

How Can Professionals in Massachusetts Get Professional Liability Insurance?

For help finding professional liability insurance that properly meets you risk mitigation needs, contact the independent insurance agents at Flavin & Flavin Insurance. Our agents have helped many professionals in Massachusetts get the coverage they need, and we’re here to assist you as well. Since we’re an independent agency, you can trust our agents to recommend the best available policy no matter what insurance company offers it.