Professional Liability Insurance is an Insurance that safeguards professionals like accountants, lawyers and physicians from negligence and further claims commenced by their clients. It is compulsory by professionals who have expertise in a particular area for the reason that general liability insurance policies do not provide protection against claims arising out of business or professional practices corresponding negligence, malpractice or misrepresentation.
Professional liability insurance may have diverse names, like that of medical malpractice insurance for the medical profession, and errors & omissions insurance for real estate agents depending on the profession. Professional liability insurance is a field coverage that is not offered under homeowners' endorsements, in-home business policies or business-owners' policies. It only covers claims completed throughout the policy period.
Axis Capital, a group of companies based in Bermuda with 29 branches worldwide including the United States, provides customized insurance coverage –i.e. Professional Liability Insurance.
Professional Liability coverage, otherwise known as Errors & Omissions (or E & O) Insurance, guards you from losses that possibly will result from a prerogative of negligence, errors, or omissions in the performance of your professional services. For instance, E & O insurance would safeguard against claims that a contractor’s installation of flooring led to a trip and fall accident, to avoid complaints and to protect them. More normally, Professional Liability Insurance can protect from claims linking loss of client data; system or software catastrophe; and claims of nonperformance, fraud, or negligent oversell.
Although a lawsuit deficiencies merit (what’s often called “frivolous”), Professional Liability Insurance covers the legal charges you suffer as you defend yourself in court. This marks E & O Insurance a significant component of any insurance portfolio, since errors and omissions claims for computer consultants are reflected as “low-frequency / high-severity.” This is because of that few E & O claims are filed in the industry, nonetheless those that are tend to be expensive.
Some Professional Liability Insurance policies even contain coverage for missing income related with defending yourself from a lawsuit. It's a usual apply among professionals from U.S. up to SE countries such as KL Malaysia, Jakarta Indonesia, Bangkok Thailand and worldwide, In conclusion, you may be able to protect a policy that pays you, should you be incapable to work because of the claim.