Professionals of all types can be sued. If you are in the business of providing advice or guidance, you could find yourself on the wrong side in a lawsuit. Professionals at risk include but are not limited to financial and accounting professionals, architects, designers, consultants and health and wellness practitioners. A professional liability policy is imperative if your clients pay for your expertise, knowledge, advice or care. Anyone in a profession where a mistake can result in a financial loss should consider professional liability insurance.
Professional liability insurance goes by a number of different names and can be applied to a wide variety of professions. Here are three of the more common types of professional liability insurance:
Malpractice insurance: This coverage is designed especially for medical professionals. It protects against suits that allege negligence or mistakes. Anyone working in the healthcare field should consider a malpractice policy.
Errors and omissions liability insurance (E&O insurance): This type of coverage is ideal for lawyers, consultants, real estate agents, stock brokers, insurance agents, designers, architects and others. These professionals offer their advice and knowledge to earn a living. Clients who act on that advice, whether it be buying a certain type of insurance or purchasing a particular stock, are at risk and may feel that the service provided resulted in a financial loss.
Directors and officers liability insurance (D&O insurance): This coverage is specific to high-ranking executives in a company. It handles a variety of circumstances, including unlawful acts, poor investment decisions, the release of confidential information, issues with hiring and firing, gross negligence,