What is Professional Liability Insurance?
You’ve probably had experience buying insurance to protect your house or car from the perils of fire, theft or damage, and you most likely have Health Insurance to protect you from the financial burdens of injury or illness. Professional Liability Insurance protects your personal financial assets from the hazards you face as a medical or health care professional.
In any professional setting, a client can become dissatisfied with the services being rendered or advice being given. Even a seemingly trivial incident can spark a complaint. And whether an accusation of negligence is legitimate or not, being prepared to defend your financial well-being and your good name is essential in upholding your career. Professional Liability Insurance helps you do just that.
What does Professional Liability Insurance provide?
Also called Malpractice Insurance or Errors and Omissions Insurance (E&O Insurance), Professional Liability Insurance provides a personal financial buffer against claims made by a client or customer who alleges your negligence stemming from the professional service and advice you provided. It covers the costs associated with legal action and any judgments deemed payable to your client, up to your policy limit.
Like any type of insurance, it’s a safeguard against the unexpected.
What does negligence mean?
Negligence refers to the unintentional failure to provide the standard of care, knowledge, or skill of the average professional peer in good standing, under similar circumstances. Any person who is compensated for providing professional advice or service based on his or her expertise can be charged with negligence.
Allegations of negligence in health care, medical and wellness professions could include:
The good news―there are protective measures you can take to minimize your risk of negligence.
Accurately recording your interactions and guidance plans for each client, maintaining licensing and continuing education requirements, and keeping a safe and professional atmosphere in your practice can all help you provide a great standard of care to your customers. But despite your best practices, nothing can fully insulate you from an accusation of misconduct made against you. Professional Liability Insurance protects you in that moment.
When buying insurance, it’s important to explore the options available to you, as costs and coverage can vary from one provider to the next. By doing your due diligence, you’ll ensure the best insurance coverage for the work that you do as a health care professional.