No business or self-employed professional is immune to lawsuits. These can be time-consuming and costly – even if you win the case. That’s why it is important to have protection that can keep you from high out-of-pocket expenses. One way to do this is by carrying professional liability insurance coverage.
A professional liability insurance policy can protect companies and various individuals like lawyers, doctors, accountants, insurance agents, and financial advisors, against claims from clients, such as personal injury and negligence – even if such “damages” were unintentional.
These types of claims can be more common than most people think. For instance, it is estimated that between 5% and 10% of attorneys in practice are typically subject to an allegation every year – regardless of how large or small the size of the practice is.
Some professional liability insurance policies include “shrinking limits,” which means that the insurance company’s payment of defense costs may reduce the overall policy limits. With that in mind, it is important to consider a specific type of plan for your business or practice.
As with many other types of insurance, the professional liability landscape has many “moving parts,” which can make it difficult to know whether or not you have the appropriate amount of coverage in place. It is also necessary to review your coverage on a regular basis in order to make any adjustments that are needed – particularly if your company has expanded.
Working with a specialist in the professional liability insurance arena can help you with determining how much coverage you may need, as well as which insurance carrier may provide you with the best protection for your needs.
If you have more questions regarding professional liability insurance – or if you would like to obtain a coverage quote – contact Coastal Insurers at (800) 368-3363, ext. 1001, or send us an email at blair@coastalinsurors.com.