Author: Jonas Akula
Professional Liability Insurance or PLI is quite popular these days. A lot of professionals are purchasing it now than ever before. However, some people are struggling with questions such as ”how much professional liability insurance cost?” While these questions are crucial, one must understand what this insurance policy is all about before taking things further.
It is crucial for people first to understand what exactly is professional liability insurance. Here is an article that will help provide all the necessary information so that you can better understand what this insurance policy is all about.
Who Can Benefit from PLI?
PLI or Professional Liability Insurance can protect professionals such as doctors, lawyers, and accountants, to name a few. It covers some of the professionals against negligence and various other claims that the client can initiate.
Professionals that are experts in their fields should consider getting this insurance. The general liability insurance does not cover claims that arise because of negligence, misrepresentation, or malpractice. One should not worry about the question, ” how much professional liability insurance cost?” but they should worry about how much money they have to spend if some unforeseen event has to occur.
Professional liability insurance is also known as medical malpractice insurance and errors & omissions insurance. While the first one is common in the medical field, the latter is popular among real estate agents.
How Does It Work?
PLI covers only those claims that are made during the policy period and does not cover beyond it. This insurance policy will protect a professional from claims that arise because of errors (covered in the policy), negligence of the insurer, and omission.
Typically, this policy will not protect the professional against any claims over events before the policy date. Some insurance policies, however, might consider using retroactive dates.
What Does PLI Not Cover?
PLI will not cover some of the following things:
- Criminal Prosecution
- It does not cover all types of legal liability — it only covers only some that appears on the list
- It does not cover technology issues or data breaches
While it does not cover these things, you might want to purchase a separate policy to cover aspects such as technology, data security, or other similar issues.
Go Through the Wordings
The wordings of the policy might differ from company to company. Hence, one must take time to check on the insurance policy’s features before purchasing this policy.
Since the wordings vary, one must put in their best effort to read and understand the policy before signing up for the insurance policy. This way, if there is any confusion, one can resolve it before taking things further. Please spend some time with the insurance agent to understand why they are better than others.
Getting a PLI for yourself is crucial if you want to tackle unforeseen events in your profession. By taking care of this aspect, you will protect yourself from claims that can seriously damage your reputation and one that requires you to pay a considerable sum.
