If you own a business or firm and work with clients, you must ensure that you have the best professional liability insurance to protect you in case something goes wrong.
Professional liability insurance, also known as Errors and Omissions insurance, protects you from financial damages that may arise from mistakes or oversights in your professional services. This type of insurance is important for any business that provides advice or services to clients.
To find the best professional liability insurance companies, we made a list of the best professional liability insurance companies people should check out, and we also went ahead to explain what professional liability insurance is, the two basic types sof professional liability policies, the cost of the policy and many more.
KEY TAKEAWAYS
- You will learn more about the best professional liability insurance for your business.
- The two basic types of professional liability policies
- Get answers to some frequently asked questions about professional liability insurance
What is professional liability insurance?
Professional liability insurance, also known as PLI, protects professionals such as lawyers, accountants, and physicians against negligence and other claims initiated by their customers or clients.
Professionals with expertise in specific areas require this type of insurance coverage because general liability insurance policies do not offer people protection against claims arising from mistakes, negligence, malpractice, or misrepresentation.
The two basic types of professional liability policies
There are 2 basic types of professional liability policies: claims-made and occurrence. Some professional liability insurance policies are “claims-made,” which implies that the policy must be in effect when the event took place and when a lawsuit is filed for a claim to be paid.
If people change careers or retire, they may want to purchase an “occurrence policy” that will cover a claim for an event that took place during the coverage period, even if the suit is filed after the policy lapses.
What professional liability insurance include
Professional liability insurance (PLI) coverage does not include criminal prosecution nor all forms of legal liability under civil law; it only consists of those listed in the policy. Below is a list of what professional liability insurance include
- Mistakes, errors, and oversights in services provided
- Negligence or failure to meet standards
- Breach of contract
- Undelivered services
- Missed deadlines
What professional liability policy cost
How much people pay for this type of insurance will depend on the area they practice in, the field they are in, and the number of claims people have had against them. Other factors that might affect their policy’s price are the number of employees people have and how many years they have been in business.
Like other types of insurance, coverage deductibles and limits also influence how much people will pay. According to some insurance providers, the median cost for professional liability insurance is around $59 per month, with most policies costing about $500 and $1,000 per year.
The 7 Best Professional liability Insurance Companies
A professional liability insurance policy can help cover the costs of defending against a lawsuit and any settlements or judgments. To help you choose the best professional liability insurance for your business, Below is a list of the 7 best professional liability insurance companies to check out
1. Chubb
The company has an A.A. rating from Standard & Poor’s and an A++ rating from AM Best, indicating excellent financial strength, and it was also highly rated in customer satisfaction.
Chubb’s professional liability insurance company policies cover a variety of professions, including financial institutions, media, technology, architects, engineers, lawyers, and public entities.
The company’s policies can be tailored to fit businesses, and the company offers broad definitions of wrongful damages, acts, and insureds. The company offers online claims support, online quotes and online account management and it also provides admitted coverage in most states.
2. The Hartford
The company has been given an A+ rating by Standard & Poor’s and AM Best, indicating the company has a high level of financial strength. The Hartford company has high ratings from several J.D. Power surveys of commercial insurance.
The company offers professional liability insurance for different industries, including market research firms, accountants, consultants, interior designers, advertising agencies, graphic designers, technology companies, and more. The company offers online claims management, quotes, scenarios, and information for small business owners.
3. AIG
Based on research, the AIG company is one of the best overall professional liability insurance providers. The AIG company serves nearly every industry, including hospitality, aerospace, healthcare, construction, transportation, education, and more.
People can choose from a long list of coverages, including speciality options they won’t find elsewhere. No matter what happens, an AIG professional liability policy has people covered.
4. Hiscox
The Hiscox company received A ratings from both Standard & Poor’s and AM Best, meaning the company has a solid capacity to meet its financial obligations. The company offers online quotes for its professional liability insurance, and non-stop claims service is available.
The Hiscox company provides global coverage for claims as long as lawsuits are filed in the United States or Canada. The company coverage includes contract and temporary workers.
5. POGO
Pogo’s company insurance marketplace is designed specifically for sole proprietors and freelancers, and it can help people find reliable coverage at an affordable price.
It is a newer insurance company that operates as an online insurance marketplace. It’s one of our top freelancer recommendations because it specializes in coverage for independent contractors and understands self-employed professionals’ risks.
6. Embroker
The company is an online broker offering online claims, quotes, and 24-hour assistance via email, chat or phone. A personal account manager can help with insurance needs and assist people in getting the right product liability insurance for their business.
Embroker does not require people to provide ownership, equity, or financial statements, making it simple to apply for coverage. Policies can be tailored to individual needs, with the option to choose your deductibles and limits.
Embroker is backed by Munich Re, a financially strong insurer with an A+ rating from AM Best and an A.A.- rating from Standard & Poor’s.
7. CoverWallet
The company is an online broker backed by Aon. The CoverWallet company provides online quotes, assessments to help people understand what types of insurance their business needs, and online claims processes.
The company uses customized applications and algorithms to help people get the insurance they need without irrelevant questions. The CoverWallet company also provides resources to help business owners understand the risks they may face.
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Conclusion
Professional liability insurance is insurance coverage for small business professionals like accountants, doctors, lawyers, or architects for protection against professional mistakes. Insurance is essential because mistakes happen regardless of how experienced or careful a professional is.
Professional liability insurance costs between $500 – $1,000 per year, so it is cheaper than footing the bill for court costs, lawyers, and other related expenses. If a person is a small business owner, they should talk to an insurance agent to determine if they need coverage and how much they should get.
FAQS
Does professional liability insurance cover errors and omissions?
Errors and omissions insurance is also professional liability insurance. So, you will still get the same coverage, despite the different names.
Is an employer’s liability the same as a professional liability?
Employers’ liability insurance covers injury claims made by workers or employees.
Do I need both general and professional liability insurance?
General liability insurance covers claims related to physical harm allegedly caused by a person’s business or the neglect of the business. Professional liability insurance covers financial loss resulting from negligence, errors or oversights associated with professional services.
If a person has both types of risks, they need both types of insurance.
What insurance do employers need?
Every business or organization with employees needs to have employer’s liability insurance. While the employees’ comp covers the direct costs of employee injuries and illnesses, it doesn’t cover legal fees and other expenses when a worker or an employee sues the business.
Do you need employer’s liability if you have no employees?
If a person is self-employed and works independently, they won’t need employers’ liability insurance. However, people need to remember that they may need other types of insurance coverage, such as product liability, public liability, or professional indemnity insurance.
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