Protect Your Business With professional liability insurance in Texas

Living in Texas as a professional can be a busy day if many people rely on your expertise. The customers pay for your services, opinions and advice. So you should be ready in case some problems arise. You have to make sure that you are covered by the consequences of claims that may arise from your advice. Professional liability insurance is the best way to protect you and your even your business against legal defense costs resulting from your customer’s claims of negligence.

In other professions, insurance for professional liability can be malpractice insurance or errors and omissions insurance. However, the core concept is the same: to protect a professional from negligence lawsuits from their clients.

Negligence lawsuits are about failing to perform what is expected from a professional, your or your business services, based on the contract, alleged misinterpretations, and other claims. They claim financial loss for the client based on allegations.

You don’t have to worry about the costs if you purchase professional liability insurance in Texas. It can give you or your business a lot of protection for a lesser amount than you expected.

Others think that general policy already covers them, but they only protect you against bodily or property damage and some personal injury claims. Professional liability insurance policy best works to protect your business from possible negligence claims.

What Is Professional Liability Insurance?

Professional liability insurance (PLS) is a policy that shields professionals such as accountants, lawyers, architects, and physicians and their business against potential negligence and other clients’ claims. A professional who is an expert in a specific area, or provides specific services needs to have liability insurance that cover claims from business or professional practices such as malpractice, negligence, or misrepresentation.

How Professional Liability Insurance Works

There are different names for professional liability insurance for every profession. It is called malpractice insurance for medical practitioners, and errors & omissions insurance for real estate brokers. However, this policy is not granted under homeowners’ coverage, in-home business insurance or business owners’ policies. It only covers claims filed in the course of the policy period.

Professional liability insurance policies usually work best if claims are made during the policy duration. A typical professional liability policy will insure the policyholder from loss resulting from any claim made during the policy period. Claims can be due to covered mistake, omission, or negligent acts acted in the administration of the policy holder’s professional business. Incidents that happen before the coverage was activated may not be covered. Even some policies may include the retroactive date.

What’s Not Included in Professional Liability Insurance

Criminal pursuit and all sorts of legal accountability under civil law are not included in the professional liability coverage, but only those shown in the policy. The same goes for cyber liability or data breach, and other technical issues are not included in core policies. Instead, the insurance coverage data security and other technology security-related issues can be purchased as separate policies.

Do I need professional liability insurance?

Professionals that manage their own business need professional liability insurance even though they already have general liability insurance, business insurance or business owners policy. General liability policy will protect them against financial losses from potential lawsuits filed against them by their clients. Professionals are expected to be experts and have in-depth knowledge or training in their respective areas of expertise. 

Minimum Liability in the State of Texas

General Liability coverage or State Minimum coverage covers the third party and their vehicles if an accident is your fault. You and your vehicle are not covered, but passengers in your car can receive compensation for their injuries. The coverage is enough to meet Texas’s legal requirements and an excellent resolution if you are on a tight budget.

Bodily Injury

  • $30,000 compensation for each injured person
  • $60,000 compensation in total per accident

Property Damage

  • $25,000 compensation per accident

Different Types of Professional Liability Insurance?

Medical malpractice insurance

Medical malpractice insurance is the most common type of professional liability insurance policy. Medical professionals are working under an inconsiderable threat where lawsuits can be filed at any time due to alleged malpractice. Although medical malpractice cases are considered civil torts in the United States, medical malpractice insurance can compensate for providers’ cost of such lawsuits.

Directors and Officers Insurance

Director and officers insurance is a special type of professional liability insurance. Instead of protecting risks associated with a specific industry, business services, directors and officers insurance, it provides coverage for all professionals who have particular positions within a business or organization. This policy shields high-ranking officials against risks that may compromise their roles as leaders.

Errors and Omissions Coverage

Errors and omissions insurance is a type of liability coverage designed to protect people who offer advice or professional services as their livelihood. This coverage suits any professional who gives advice:

  • Lawyers who provide legal advice to their clients.
  • Accountants who provide financial and tax advice
  • Insurance agents who offer advice on insurance coverages and policies to their clients
  • Real estate agents and brokers who advise clients on real estate purchases and sales.
  • Investment advisors who give clients advice on stocks, mutual funds, and other investments.
  • Other job workers who provide professional services and advice related to their field of expertise.

If you are a professional living in Texas, make sure that you are adequately insured. Get in touch with an insurance agency in the state who has a thorough knowledge of how professional liability works and to learn how to get insurance quote online. Professional liability insurers are experts who can help you determine the right coverage that suits your insurance needs as a working professional in Texas.