Answering the FAQs of professional liability insurance: Does your business practice need it?
Professional liability insurance and business liability insurance have similarities between them, but they are not exactly one and the same. Stay with us as we try and answer some of the most frequently asked questions about professional liability insurance, beginning with providing an answer to this very question.
What is the Difference between Professional Liability Insurance and Business Liability Insurance?
The main difference between the two is in their very definitions.
Professional liability insurance It is an insurance policy devised to protect the private practice of surgeons, physicians, lawyers and other professionals who do business by selling their professional expertise or skill as a service. If you visit The Hartford website, you will find detailed information regarding exactly how every professional from real estate agents and home inspectors to IT professionals and accountants can also benefit from professional liability insurance, in addition to the more common buyers of professional liability insurance policies, such as physicians and lawyers.
They also make the entire procedure of getting the right kind of professional liability insurance completely online, contactless, and a super quick process. If you are a professional who earns a living by selling his/her professional skills in any way, you need professional liability insurance to protect your business and your person from negligence claims.
Business liability insurance similar to professional liability insurance, business liability Insurance also protects against compensation claims from dissatisfied or harmed customers/clients for the most part, but it covers a company or organization, rather than a single professional against negligence claims.
Is there Really a Difference between Errors and Omissions Insurance and Professional Liability Insurance?
The short answer would be no, there isn’t a difference between Errors and Omissions Insurance and Professional Liability Insurance, but insurers may list them separately on their websites just because of SEO reasons. However, they are essentially one and the same: two different names for the same type of insurance coverage policy. As always, a lot depends on the insurance company itself, but for the most part, they are indeed synonymous.
Do I need a General Professional Liability Insurance or Do I Need a Tailored Policy?
Consider your professional liability insurance policy to be similar to a suit. If it’s tailored to your business’s or practice’s specific needs, it will be more cost-efficient and relevant to your particular case. On the other hand, just like a readymade suit, a generalized professional liability insurance policy will likely get the job done, but it won’t fit your business and its specific needs as well as a perfectly tailored and personalized professional liability insurance solution would. Therefore, the answer is that no, you don’t exactly NEED a tailored policy for professional liability coverage, but you can certainly benefit from it far more than you would with a generic policy.
What Affects the Premium I Pay for my Professional Liability Insurance Policy?
The answer to this question can vary, but how much premium you end up paying is more or less related to the following factors, as stated below.
- The kind of professional you are
- The kind of risk management processes you have in place to protect against misgivings
- Your professional record in the sector
- The professional liability insurance provider
- The number of add-ons (coverages beyond the initial ones) you have on the policy
- How high you want the coverage limit to be
There might be additional factors, but these are certainly the most important ones on which your premium will be based.
Are Professional Liability Insurance Policies Immediate in their Coverage?
The answer depends on who the insurer is really, but in most cases, the insurance coverage will be immediately applicable and valid. It’s particularly relevant because a lot of customers/clients will not work with a professional who doesn’t have professional liability insurance, and having that certificate could mean the difference between good business and bad business!
How Can I Reduce Premium Rates?
We already discussed what affects the premium rates, so the answer is simple; the more risk reduction policies you implement, the lower your premium will be. You may also find that tailored packages are cheaper since they allow you to remove coverage you don’t really need, or are the least likely to need.
How Should I Make a Claim?
You will need to call up your insurance provider’s helpline number and they should guide you regarding the steps you need to take. Ideally, the customer care unit should be open 24×7, but it may differ in accordance with the insurer and the present circumstances.
This is not a definitive list of FAQs, but it contains the most commonly asked questions all the same. If you have any additional questions, you may want to consult your provider for more details.