How does the professional liability insurance coverage work?


Professional malpractice and errors and omissions liability claims are very common in our present-day litigious society. Professional liability insurance covers those professional occupations that are exposed to the highest risk of being held liable for not exercising the necessary legal duty of care and for causing injuries or property damage to a third party.

What Professional Liability Insurance Coverage is Out There

Any professional whose occupation makes them prone to exercising negligence and thus hurting other people, can purchase professional liability insurance. You can find diverse personalized professional liability insurance policies designed specifically for you. If we were to categorize professional liability insurance, it would fall into two major groups:

  • Physicians, surgeons, dentists professional liability coverage is specifically designed for medical professionals in the event that they are the defendant in a medical malpractice liability lawsuit. The policy, also commonly referred to as medical professional liability insurance, covers all the liability damages that the insured is adjudged in court to pay because of a medical incident they have caused.

    The physicians, surgeons and dentists professional liability coverage only provides protection for liability, which has arisen out of the professional duties of the insured. General public liability is not covered under professional liability insurance.

    There are two insuring agreements that a healthcare professional can purchase:

    • Coverage A provides professional liability protection on an individual basis, and
    • Coverage B offers protection for surgeons and doctors working in groups against group liability.

    An extra endorsement can be added to the policy, extending the coverage to those who work under the supervision of the insured.

  • Errors and Omissions Insurance is designed for protecting professionals who are exposed to the risk of being held liable for their occupational errors and omissions. Professionals such as engineers, architects, lawyers, real estate brokers, financial analysts, insurance agents and accountants are among the most common buyers of errors and omissions insurance.
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