Research shows that medical malpractice lawsuit losses from 2012 to 2019 in the U.S. and Canada combined total over $5.47 billion. So if your business or profession is prone to liability claims of negligence, malpractice, or errors and omissions, consider getting a professional liability insurance policy.
Having a professional liability policy backing your business might be a bit pricey, but all the premiums paid are worth it, considering the coverage protects you from various liability and negligence risks. Some of the professionals who may need professional liability insurance include real estate agents, defense attorneys, accountants, surgeons, and general physicians.
Are you unsure whether your current general liability insurance policy has the coverage you need against negligence and malpractice claims for the professional services you offer? Assured Standard can help review your current general liability insurance policy. Contact us today!
These days, a quick Google search will already reveal dozens of professional liability insurance policy providers. However, having too many options can also be confusing, especially for first-time small business owners. Fortunately, Assured Standard is here to help.
We've made a list of the best professional liability insurance coverage providers on the market. These insurers provide a good amount of coverage, have years of experience in legal defense, and can provide the overall protection you need to combat negligence and malpractice claims.
Number one on the list is HIG. It's an all-around commercial insurance provider backed by two centuries of experience and offers a wide range of coverage options. Note, however, that HIG only gives out rates and premiums upon request.
On the plus side, they work with businesses from all types of industries. Whether you sell products at risk of recall or perform surgical operations, HIG has the ideal plan for you.
Hiscox focuses primarily on providing commercial insurance solutions to small businesses. You'll get large discounts, flexible payment terms, and startup-specific coverages.
For anyone who owns a clinic, is in the healthcare industry, or runs a business at risk of facing medical malpractice claims, try The Doctors Company. It's an insurance company spearheaded by licensed physicians knowledgeable in the ins and outs of facing medical malpractice charges.
The only downside is that they only offer medical malpractice coverage, so you might have to get other types of insurance coverage elsewhere.
For business owners who want to prevent getting malpractice and negligence claims filed against them in the first place, turn to CNA Financial. They follow a streamlined process to combat, assess, and prevent possible claims. Not to mention, they have a wide range of commercial insurance coverage for all your business needs.
The only downside to CNA Financial and their century's worth of experience is that they still have an outdated website. Not to mention, they're not BBB-accredited nor do they offer specified discounts on premiums and rates.
AIG is a century-old insurance provider trusted for a wide range of insurance policies, including professional liability. Clients from all types of industries can get coverage for everything from defective unit recalls to contaminated product complaints.
Professionals interested in getting their services however should note that their customer service has been reviewed as not ideal.
Professional liability insurance protects your business from the following:
-Breach of duty
-Misstatements/misleading statements
-Errors and omissions claim
-Negligent acts
Breach of warranty/breach of confidentiality resulting in failure to perform professional services.
Defamation
Unintentional infringement of copyright acts
Liability policies also cover the following expenses:
-Investigation and defense charges
-Inquiry attendance fees
-Material damage costs/penalties
-Automatic subsidiary coverage
Note: The professional liability insurance cost on your plan would vary depending on the coverages listed above.
Professional liability insurance options protect policy owners from financial losses resulting from claims of negligence and malpractice.
A very important clause to take note of is that this insurance plan only protects you from claims within the period in which your policy is active. If there's a quick gap in between your policy renewal, then a client happens to file a claim, this would sadly be out of the policy's coverage.
The proceedings of a professional liability insurance policy depend on a case-by-case basis. For example, if you were in the healthcare industry, you would likely face medical malpractice claims. On the other hand, accountants and real estate professionals would likely have errors or omissions claims filed against them or their business.
Professionals in such fields need professional liability insurance to avoid the extreme costs that come with going to court against their business.
Note: Your professional liability insurance coverage does not extend to any claim that is criminal in nature, and nor does it protect your business against claims on data breaches and cyber liability.
The median professional liability insurance cost for the average small business owner in America falls at around $1,000 to $3,000 per year. Generally, those who need higher professional liability coverage and provide high-ticket products/services will end up with a higher monthly/annual premium.
The premium on a commercial insurance policy might be pricey, especially for small business owners, but the coverage it has may save you from potentially losing thousands of dollars. In fact, the average settlement fee for a slip-and-fall case already ranges upward of $20,000. This amount alone is enough to make many small businesses—and even medium-sized ones—go bankrupt.
Surveys show that professional liability claims losses in the U.S. and Canadian medical industry had a combined total of $5.47 billion.
The protection that professional liability insurance companies provide is a must for all businesses at risk of negligence, malpractice, or errors and omissions claims. Remember, project delays and mistakes happen. You'll need some sort of coverage and protection to shoulder some of the risks associated with the professional services your company offers.
If you have an existing general liability policy, consider reviewing the coverage limits with a general liability professional. Assess the extent of your service/product liability limits.
Still on the fence about the liability coverage your small business needs? Assured Standard guides various businesses from all types of industries on how to choose the most suitable commercial insurance options. Get in touch with Assured Standard today!
