Who Needs Professional Liability Insurance Coverage the Most?

As a professional, how do you know whether or not you might benefit from professional liability insurance coverage?

While discussing this with your insurance broker is always a wise idea, the general rule of thumb is as follow: If you work in a field in which the constant threat of being held liable for an error or omission that you might or might not have committed exists, then being covered under this policy is a must.

Usually, medical professionals such as doctors and nurses are the most sued people on earth. This is why it is absolutely imperative for them to be covered under this policy. As an example, it is not uncommon for a nurse to be accused of professional negligence after letting a patient fall and injure themselves. Sometimes, all it takes is a simple mistake to ruin a career.

Medical professionals aside, this policy often tends to be popular among lawyers and consultants. Because of the nature of the services they provide to their clients—and because everyone is prone to making mistakes, even the best professional among us—being sued is a constant threat that they must face on a daily basis. Regardless of whether a lawsuit is founded or not (because they are not always founded), the simple thought of having to go through the process of proving their innocence should be a good enough incentive for every professional to acquire this policy.

Notaries, real estate agents, insurance agents and accountants also should consider obtaining this type of coverage. The truth, however, is that the list could go on and on. The world abounds with professionals constantly at risk of being sued. As you probably already know—hopefully not from experience—it is sometimes very difficult to prevent clients dissatisfied with the quality of services they received from professionals from suing them. The lengths that they can go to is incredibly frightening—especially if you put yourself in the shoes of a professional at fault. Regardless of what profession you practice, finding a professional liability insurance policy that fits both your budget and your respective profession is perfectly doable. All it takes is a few minutes of your time and a consultation with your insurance broker to safeguard the future of your career (and of your finances).  Click here to learn more.

 

Why do Lawyers Need Professional Liability Insurance Coverage?

For many lawyers, the thought of being sued rarely crosses their mind. The truth is that being a lawyer does not make one immune to negligence, let alone lawsuits resulting from such negligence. If you are a practicing lawyer, you probably already know a good deal about insurance policies. But do you know why a professional liability insurance policy could benefit you?

Let’s first take a look at what this policy is before delving into why you need it. In its simplest definition, a professional liability insurance policy protects you from financial loss related to an error or omission that might have occurred during the course of your work. If someone decides to hold you liable and file a lawsuit against you, then being protected under this type of policy is always the best way to minimalize the damage.

As with every other profession, working as a lawyer comes with its own degree of risk. Most commonly, lawyers find themselves having to face negligence claims. Negligent acts may include giving wrong advice to a client or simply failing to file documents on time or at the wrong place. If you are an attorney and someone files a lawsuit against you claiming professional negligence, then the fees related to the claim will have to be paid out of your own pocket.

Similarly, attorneys can be sued for a breach of fiduciary duty. As you already know, attorneys are fiduciaries to their clients, which means that they must always have the best interests of their clients in mind. A lawyer taking advantage of his position to gain a profit at the expense of his client is a breach of fiduciary duty. The latter tends to be more aggravating than a negligence claim. Without proper coverage, this type of lawsuit can leave a lawyer in deep financial trouble.

Lastly, it is not uncommon for lawyers to deceive clients and be held accountable for such deceptions. When a client purchases the services of a lawyer, the former expects to receive adequate services from the latter. Those claims often arise as a result of the lawyer “overstating” their abilities or lying to make their services more enticing. A good example is a lawyer stating to his client that he has past experience dealing with a certain type of case—when in fact he has not.

Being a lawyer is not always easy. Often, it requires a good deal of caution. Even if you do not actively try to “cheat” your clients, you might be held liable for something that you said or did unconsciously. The best way to prevent such an error from backfiring on you is to be covered under a professional liability insurance policy for lawyers.

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