According to Investopedia, professional liability insurance is insurance that protects professionals against claims such as negligence that are brought about by clients or patients. Certain professions, particularly those that work in a specific area of expertise, require this type of insurance. This is largely because general insurance does not cover claims that are brought about through business transactions or relationships. The following career choices require professional liability insurance to protect the practitioners of each particular field against potential claims.
Attorneys need liability insurance to protect themselves from malpractice. If an attorney does not carry liability insurance, a client can sue them for misrepresentation. This could cause the attorney to be disbarred and ultimately lose their license to practice.
2. Real Estate Agents and Brokers
Real estate agents and brokers also need to hold professional liability insurance. Liability insurance protects a real estate agent from damages that are incurred as a result from deals that fall through. Failure to be protected from issues such as that could be very costly to a real estate agent. A broker also needs to carry liability insurance to assure there will be financial protection from broken contracts or deals.
3. Insurance Agents
Insurance agents need to carry professional liability insurance to protect themselves if the insurance company is sued for any perceived wrongdoing. Although it is the companies that are usually sued and not the agents, it is still wise for the individual agents to be covered in the event they are personally named in a suit.
4. Counselors, Therapists and Doctors
Counselors, therapists, and doctors all need to carry professional liability insurance. Since counselors and therapists work closely and directly with people, they are often blamed by their patients for anything that goes wrong. Liability insurance protects them if they are sued. Doctors must carry malpractice insurance to protect them from malpractice suits or any other perceived wrongdoing if a patient decides to file a lawsuit.
Professional liability insurance exists to assist professionals in the event of a lawsuit or other type of legal action. It is a must-have for anyone who works in a profession where there is even a slight possibility of being named in a lawsuit. Even if professional liability insurance is never needed, it is a secure safety net for anyone who works in a specialized profession. Having liability insurance can be the difference between maintaining a successful career or falling into financial ruin.
Thank you for reading our blog! How can we help you? Contact us today.