Those who earn their living by providing professional services are generally expected to apply their expertise to clients’ situations correctly. If they ever make an error, affected parties may seek compensation for any harm or loss incurred. Professional liability insurance can help protect professionals working in Massachusetts from certain claims and lawsuits that arise from alleged work-related errors.
Professional liability insurance is a specially designed type of commercial liability insurance. As a liability protection, the insurance normally helps with covered claims’ legal fees, judgements and settlements. In many cases, policies will begin assisting with legal fees before responsibility is determined.
Most people who work in Massachusetts as a professional should consider getting a professional liability policy. Examples of professionals who might benefit from the coverages provided by a policy include:
Doctors, nurses, physician assistants and other medical professionals
Lawyers, paralegals and legal professionals
Financial planners and advisors
Insurance brokers and agents
Real estate brokers and agents
Homebuilders, developers and contractors
Engineers and architects
Plumbers, electricians and other tradespeople
Business owners and workers who are unsure whether they’re in need of this insurance should talk with an insurance agent about their situation. An agent who specializes in professional liability policies will be able to make informed recommendations regarding coverage.
Because these policies are used by people in many different vocations, insurance companies offer a few different types of professional liability policies. Some of the more common options are:
Medical Malpractice Coverage
Legal Malpractice Coverage
Directors and Officers Coverage
Errors and Omissions Coverage
Errors and omissions coverage is the form of professional liability protection that’s often used to insure professionals who give advice. For example, financial advisors, insurance agents and real estate agents frequently can benefit from E&O coverage. Builders and tradespeople sometimes also want it for times when they give advice.
Because there’s a variety of professional liability policies, professionals should work closely with an insurance agent who specializes in this type of coverage when shopping for a policy. A knowledgeable agent will have the expertise needed to select the right type of policy based on a professional’s individual situation.
Professionals who work directly for an organization may be covered by a professional liability policy that the organization purchases. There are frequently limits to when any such policy’s coverage, though.
In addition to any claims maximums, employer-provided coverage often doesn’t extend to any side work or charitable efforts. Professionals who offer their services in a consulting role or on a pro-bono basis at times may want to purchase their own policy. Without another policy, coverage gaps may leave them exposed to unnecessary risk.
Professional liability policies are widely available as both stand-alone policies that are purchased individually and through package policies that combine several commercial coverages together. Many insurance companies in Massachusetts have package policies that come with extensive coverage options which include professional liability coverage selections. Some of these package policies are even underwritten for professionals in a particular industry.
For help finding professional liability insurance that’s well-suited to your line of work, contact the independent and experienced insurance agents at Paul T. Murphy Insurance. Our agents have assisted many professionals in Massachusetts with their insurance needs, and they can find you a policy that’ll give you robust protections.