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Professional Liability Insurance Covers the Intangibles

Professional Liability Insurance which is also known as errors and omissions insurance, E. & O and malpractice insurance , are all common terms used to describe professional liability insurance.

Some of the common areas way or this specific coverage is needed are found in the following industries. Architects and engineers typically need this type of insurance. The drafting, designing, and building projects according to specifications that the architect and engineer creates, typically have innate professional liability insurance exposures.

Lawyers and attorneys professional liability is another unique specialty niche for professional liability insurance. Whether it be civil law, constitutional law, or criminal law almost all of the work and services that are produced by an attorney or of an in tangible nature and professional.

Doctors, dentists, chiropractors, and almost every aspect of professional healthcare require malpractice insurance which is a form of professional liability insurance. While all of these healthcare professionals typically give counseling and professional advice, they also are normally also administering hands-on physical contact with people in general.

The next category is that of agents. Some of the more common types of agents would be real estate agents, insurance agents, mortgage broker agents, and travel agents. All of these types of professionals have a professional liability exposure in the professional services that they are providing.

There are also some specialty niches that require professional liability insurance as well. Some of these industries might include technology consultants, business management consultants, media consultants, human resources consultants, and financial advisors.

Many small business owners wrongly assume that there general liability insurance policy will also expand to cover their professional liability exposures. Whether or not the professional liability claim has merit, having a professional liability policy in place will provide you with the legal defense that is necessary to defend you against any and all claims. While 95% of all claims never go to court, it is the defense of the claim that can cause severe financial harm even though you are not at fault. Businesses that have professional liability exposures tend to have much greater exposure to large claims that are professional in nature versus a large claim on their underlying general liability insurance.

Because the common law legal system is an ever changing system in a state of flux the requirements that are required in all professions tend to be very fluid versus static. Thus, having a professional liability insurance policy in place will go a long ways in providing the ever-changing protection that you will need in the future. Making sure that your policy has worldwide coverage is something that you need to consider especially as professionals do business in the global economy.

Professional Liability Insurance normally does not cover the same types of claims and losses as a general liability policy does. Nor does the general liability policy cover the same types of claims and losses that professional liability policy does.

Hopefully this brief summary of the professional liability insurance will help you as a small business owner to ascertain whether you have a professional liability exposure that requires professional liability as part of a small business insurance package.

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