Understanding The Concept Of Professional Liability Insurance

Professionals that provide skilled, knowledgeable, specialized, and expert professional services are the people you go to whenever you need something that are in their region of expertise. Doctors, lawyers, accountants, engineers, architects, nurses, pharmacists, optometrists, contractors, consultants, and many other more are just some of the profession that deliver professional services to clients that hire them for their expertise on their trade.  Professionals are meant to be very good at what they do and you do not really expect them to make any mistakes when it comes to doing their professional trade.

The thing is that no matter how good a professional is, there are some who are bound to commit mistakes one way or the other.  Sometimes, lack of sleep, personal and family issues, and negligence are the things that cause them to make mistakes as they lose overall focus on the thing they are doing.  Malpractice and errors & omissions are what the unsatisfied clients can pin on the professionals over the mistake they have incurred.  Although some mistakes are not really on the so serious side, others though are not.

Imagine a doctor who suddenly has a memory lapse on what he is doing during surgery.  Now try imagining an architect or engineer who fails to properly calculate the structural strength needed for the load-bearing beam.  Now just try imagining an accountant who failed to place the decimal point properly on a whole months’ worth of finances and taxation.  The thing is that all these mistakes can lead to injury, loss of life, accidents, and financial losses for the people they are providing services to.  It cannot be denied that the mistakes professionals do can usually be devastating for their client.  Of course, when a client becomes aggrieved, the normal thing for them to do is to sue the professional.

Lawsuits are expensive and can lead to serious financial losses for the person getting sued.  In order for professionals to protect themselves from lawsuits that come as a result of their liability, they need to get professional liability insurance.  Basically, the simplest way of explaining professional liability insurance definition is that this is a type of insurance designed for professionals should they inadvertently commit mistakes, errors & omissions, and malpractice on their part.  When a lawsuit is made due to claims by client against the professional, the insurance kicks in and assists in financing the defense of their client and policyholder.  When a professional is equipped with professional liability insurance, he does not have to ruin his finances by spending money over his defense.  In essence, professional liability insurance is a financial risk management protection for professionals.

Leave a Reply

Your email address will not be published. Required fields are marked *