What is professional liability insurance?
Professional liability insurance is insurance that protects a professional against damages caused to third parties or their property due to their professional activities. It covers claims related to errors, omissions, or negligence that may occur in the course of their work. In other words, it ensures that the professional is able to respond to civil liabilities that may arise from their professional activities.
What is the basic coverage of my professional liability insurance?
The basic coverage of professional liability insurance is designed to provide protection against claims related to errors, omissions, or negligence that may occur during the execution of work by a professional. The main types of coverage included in professional liability insurance are as follows:
- Indemnification for property damage – this covers property damage caused to third parties or their property due to a professional’s professional activities.
- Indemnification for bodily injury – this covers injuries or deaths caused to third parties due to a professional’s professional activities.
- Product and service liability – this covers damages caused by products or services provided by a professional.
- Indemnification for legal fees – this covers legal fees incurred by a professional to respond to legal proceedings due to their professional activities.
It is important to note that these coverages are often limited by maximum indemnification amounts. Therefore, it is important to check the coverage limits of professional liability insurance before purchasing it to ensure that it is robust enough to cover the risks faced by the professional.
Conclusion
Professional liability insurance is an essential tool for protecting professionals against claims related to errors, omissions, or negligence that may occur in the course of their professional activities. The basic coverage of professional liability insurance covers property damage, bodily injury, product and service liability, and legal fees. It is important to check the coverage limits before purchasing professional liability insurance to ensure that it is robust enough to cover the risks faced by the professional.
