Professional liability insurance, also called Professional Indemnity Insurance, protects professional practitioners such as Chartered Architectural Technologists (MCIAT), architects, quantity surveyors, home inspectors, lawyers, physicians, and accountants against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability in Additional coverage for breach of warranty, intellectual property, personal injury, security and cost of contract can be added. As a business owner, it is important to have at least the minimum amount of insurance to cover business needs.
This is meant to cover and protect business owners or operators for many different circumstances.It basically covers any events in which the business owner is sued for something that happened as a result of a person's dealing with the business. It covers not only the business owner in the case of someone suing the business, but also protects others that are on the premises or otherwise have contact with the business. These insurances are a fundamental need of a business, regardless of size. Business owners need to protect themselves, as well as to protect those who will be on their business property or using their product
The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim. The above mentioned professional services and products can cause claims without causing a bodily injury, property damage, personal injury or advertising injury. Common reasons alleged in making claims on these policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if a software product fails to perform properly, it may not cause physical damages, personal or advertising injuries, therefore the general liability policy would not be triggered. It may, however, directly cause financial losses which could potentially be attributed to the software developer's misrepresentation of the product capabilities.
Professional liability insurance policies are generally set up based on a claims-made basis, meaning that the policy only covers claims made during the policy period, claims which may relate to incidents occurring before the coverage was active may not be covered. However these policies will have a Retroactive date which can operate to provide cover for claims made during the policy period but which relate to an incident after the retroactive date (where the retroactive date is earlier than the inception date of the policy).
Such liability insurance comprises the standard Employers, Public and Product Liability and is available either as part of a Professional indemnity policy or on a separate policy on it's own.
This is meant to cover and protect business owners or operators for many different circumstances.It basically covers any events in which the business owner is sued for something that happened as a result of a person's dealing with the business. It covers not only the business owner in the case of someone suing the business, but also protects others that are on the premises or otherwise have contact with the business. These insurances are a fundamental need of a business, regardless of size. Business owners need to protect themselves, as well as to protect those who will be on their business property or using their product
The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim. The above mentioned professional services and products can cause claims without causing a bodily injury, property damage, personal injury or advertising injury. Common reasons alleged in making claims on these policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if a software product fails to perform properly, it may not cause physical damages, personal or advertising injuries, therefore the general liability policy would not be triggered. It may, however, directly cause financial losses which could potentially be attributed to the software developer's misrepresentation of the product capabilities.
Professional liability insurance policies are generally set up based on a claims-made basis, meaning that the policy only covers claims made during the policy period, claims which may relate to incidents occurring before the coverage was active may not be covered. However these policies will have a Retroactive date which can operate to provide cover for claims made during the policy period but which relate to an incident after the retroactive date (where the retroactive date is earlier than the inception date of the policy).
Such liability insurance comprises the standard Employers, Public and Product Liability and is available either as part of a Professional indemnity policy or on a separate policy on it's own.
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