Designed to cover professional physicians against claims of negligence made by clients or patients, professional liability insurance goes by many names. When used in the medical profession, it is commonly called medical malpractice coverage. Notary publics also require this protection, but they refer to it as errors and omissions insurance. Real estate brokers, management consultants and even website developers are all eligible for protection.
what’s it for?
Insurance is used to protect people when some unfortunate event occurs. Auto policies protect them in the event of an accident; Medical policies protect them from unexpected diseases; Business policies protect them from many types of accidents. If there is a fire, theft, or an accident on the job, occupational diversity will cover it.
why you need it
Some companies are lucky to survive for a long period of time without being sued by a customer, customer or employee. Liability coverage from an insurance company is the only shield most businesses have against litigant lawyers. This doubles when an employer competes in a risky industry such as construction. Why?
A construction site is arguably the most dangerous work environment on Earth. Not because people are careless, but because it is risky to make anything, anything. Workers fall down the stairs; They travel on cords; They cut themselves. Builders should understand this risk and buy the right amount of coverage from their insurance company to avoid financial ruin. but that’s not all.
These policies not only shield employers, but they also protect their workers. If an electrician falls off a ladder or a carpenter cuts himself, a liability policy will pay his medical bills. Commercial coverage will also cover most attorneys’ fees and court costs if someone files a lawsuit against you.
How many do you need
As you might expect, policy size often depends on the size of the business. Most actuaries recommend at least one million dollars of professional liability coverage for small businesses. Large businesses and corporations clearly require much more and often have heavier policies. Because lawsuits are quite common in the medical profession, insurance is the most common form of insurance liability coverage.
Most doctors have several million dollars of malpractice coverage at all times. When they work in a large practice, the figure may be five or ten times higher. Lawyers and accountants should also shoulder obligations due to the high rate of litigation in their fields. But what about everyone else?
Any business can be held financially responsible for failing to complete a project on time, which may require purchasing a professional liability policy from their insurance company. This includes general contractors, architects, builders, and many, many more. These policies include personal injury, breach of warranty, intellectual property and protection. In short, any company must have liability coverage if it has more than one employee.