Professional Liability Insurance in Pennsylvania: The Ultimate Guide
A professional whose work involves giving advice or counseling to someone is susceptible to lawsuits and claims if their client is not satisfied with the service rendered or if the advice given leads to a failure on the client’s part. If you are involved in a business that deals with this kind of service, then you should know that you need to protect yourself as well from legal liabilities that unhappy clients may throw at you. You can get this type of protection by having insurance for professional liability.
Professional insurance is a different kind of insurance policy. It’s also different from general liability, as its liability policy and its coverage and claims are not the same as the regular type of insurance that we normally know about.
If you are a professional and have been in the business for a while, then you must already be aware that you are always at risk of getting legal claims from your dissatisfied clients.
Getting professional liability insurance in PA is essential for you so that you can protect your personal assets in case legal claims occur during your practice. Here’s everything you need to know.
Who is Covered by Professional Liability Insurance?
This type of coverage policy is also called E&O or errors and omissions insurance, or is known as malpractice liability as well. Though medical practitioners are the ones most at risk for this kind of claim, professional liability insurance is not only just for a professional in this industry, but it is also for other professionals in other lines of business, such as those doing legal practices like attorneys and lawyers. A professional from other types of business may also be covered by a liability insurance professional in PA, and this includes:
- Financial advisers
- And those in the health and wellness industry
Because no professional is totally safe from claims, and as long as you are offering advice or guidance to other people as a professional service, know that you are always at risk of getting sued.
To protect yourself and your business from the liability that may arise from errors and omissions during your practice, make professional liability insurance in PA available so you can be covered when claims happen. Liability coverage PA also includes negligence that led to the financial loss of your client.
What is Professional Liability Insurance?
Professional liability insurance is separate from bodily injury coverage and is also not the same as a property damage policy. When you make liability insurance available for yourself, part of its coverage includes legal fees and an award for a claim. Clients can definitely find so many ways and reasons to file a claim against you; that is why it is best to consult an agent so that they can give you a recommendation of what best malpractice insurance will perfectly work well for you.
There are different types of policies with some specific coverage available, and depending on what kind of professional services you offer, there is certainly one policy that will suit you best.
Types of Professional Liability Insurance in PA
D&O Insurance is a type of policy designed for high-ranking executives, officers, and directors. This liability insurance can pay for a claim that results from poor investment decisions, gross negligence, hiring and firing concerns, the release of confidential information, and other conflicts of interest.
Occurrence Insurance is liability insurance whose coverage includes paying for an expense when a covered situation takes place, even when the policy has already expired but for as long as the incident happens while it was still within the policy period.
Malpractice Insurance is intended for medical practitioners as well as those in the healthcare field. This liability insurance protects them from loss as a consequence of negligence or mistakes.
E&O Insurance is for those in a type of business where they offer advice to clients. These professionals include designers, consultants, lawyers, architects, insurance agents, real estate agents, stockbrokers, etc. This liability insurance protects their assets and pays for their defense in time of a claim and at the same time, also ensures that there are enough funds to support the damages due to their unsound advice that led to their client’s financial failure.
Malpractice insurance is meant to cover a claim when professionals are sued by their clients when they are not able to satisfy the expected standards and results in the client’s loss. Those who have a particular area of expertise need to have professional liability insurance because its coverage is not the same as the general liability policy such that misrepresentation, negligence or malpractice is not covered in this kind of insurance.
The difference between general liability and professional liability is mostly in the types of risks they cover. General liability covers physical injuries to people or damages to property. Professional liability, on the other hand, covers negligence related to professional services or advice.
Coverage for this kind of insurance excludes cyber liability, criminal prosecution, issues concerning technology, all types of liabilities involving civil laws, breach of data, injuries of employees or customers, damage in the business property, discrimination issues, and bodily injury.
Part of this insurance coverage is:
- Delay in deadlines
- Faulty services
- Other oversights and mistakes, and may also cover the cost of a lawyer in case of a claim.
You can be protected from experiencing some uncomfortable and unwanted consequences as a result of malpractice as long as you make sure that your insurance is in place and that you have selected the most appropriate type of policy for yourself and your company. It is always important that you are also aware of your policy period to avoid missing payments and also when claims are filed to ensure that you get the most out of your insurance and you save yourself from getting buried in huge costs that may arise from unwanted situations due to the faulty services that you have provided.
Do I Need Professional Liability Insurance in PA?
PA state professional liability insurance can be beneficial for many professionals who can be sued for a liability action, but there are some professions that are more prone to litigations than others. While doctors are lawyers are required to carry malpractice coverage by law, other professions that are also very vulnerable when it comes to lawsuits are:
- Graphic designers
- Insurance professionals
- Management consultants
- Software developers
For example, if a lawyer misses a deadline or date, litigation can be pursued. In this case, professional liability insurance can help cover the costs. Or, in another case, if a consultant makes a mistake that can cause a business to shut down, this type of policy can also help you cover the fees of a lawsuit.
How to Get Professional Liability Insurance in PA?
The best way to start the application process is to get a free quote from an experienced insurance agent. With East Insurance Company, you can give us a call, text us or fill out a quick contact form. That means everything goes directly to us and there is no waiting for you.
Professional Liability Insurance PA FAQs
Is Professional Liability the Same as E&O?
Yes. Professional liability insurance and errors and omissions insurance are the names for the same policy.
Is Professional Liability Insurance Required by Law?
You might be required to carry a professional liability insurance policy depending on your industry or clients. Federal Acquisition Regulations require businesses working on government projects to carry insurance, including:
- General contractors
- Financial service
- General freight trucking
- IT consulting
For more common questions, you can visit our FAQ page.
If you are a professional working in Pennsylvania and you don’t want to risk being sued because of a mistake you made, professional liability insurance in PA is something you should definitely consider.
If you liked what you read here, you might also be interested in finding out more about workers’ compensation insurance in PA as well!
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