What is the best professional liability for your business?
Professional liability insurance covers liability for damages arising from the rendering of or failure to render professional services.
Protect yourself and your business from professional services-related claims not covered by commercial general liability coverage.
Here’s how you find the best professional liability for your business…
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Best Professional Liability Insurance
Professional liability insurance, also referred to as professional indemnity insurance, protects professional personnel against negligence claims made by their patients or clients.
Professionals who commonly turn to this type of liability insurance for coverage include architects, home inspectors, lawyers, physicians, real estate brokers, and accountants—among others.
Specific professional liability insurance carries different names depending on the profession. For example, professional liability insurance in the contracting profession may be called contractor’s errors & omissions insurance, while real estate brokers fall under errors and omissions insurance coverage.
When it comes to professional liability, the term best has to be used loosely because there are a ton of options, and really the best option for your business might not be the best option for someone else.
That being said, I want to give you some constructs and filters that you can work through when making the determination of which professional liability insurance carrier and policy is best for your business.
When we’re thinking about the best professional liability policy, we have to first start with a few questions:
- What exposures do you think you have and why are you trying to cover them?
- How large is the risk exposure your business faces?
- Are you willing to implement risk management systems and processes to reduce your professional liability exposure?
These questions set the foundation for finding the right professional liability for your business.
What You Need to Know About Professional Liability Insurance
The need for professional liability coverage developed due to typical general liability insurance policies only responding to bodily injury, property damage, personal injury or an advertising injury claim.
Because professionals such as architects, lawyers, physicians, real estate brokers, technology consultants, and others can cause claims without bodily injury, property damage, personal injury or an advertising injury claim, additional coverage is needed to fill this gap.
Common claims made on these policies include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.
For example, if a web design platform fails to perform properly, it would not cause bodily injury, property damage or advertising injuries. Because of this, the general liability policy would not be triggered.
But because the web design platform not performing correctly could directly cause financial losses, and may be attributed to a misrepresentation of the platform’s capabilities, the professional liability coverage would be triggered.
What Professional Liability Coverages Do You Need?
When buying professional liability coverage, there are considerations that will help you determine exactly what you need:
Is the insuring agreement broad enough to capture all of the current and future work of the policyholder? Determine if the policy covers the scope of your organization’s professional tasks and services by reading the definition of the covered services in the policy.
For example, in a medical professional’s professional liability coverage, the operative definition would be “medical services” or a comparable phrase. Rogue Risk can help you determine if all professional tasks would be covered under the operative definition or if additional clauses would need to be added.
What if there is a sale, merger or change in position at your organization? Discuss what these possible changes in services mean for your coverage. Is there approval needed to continue coverage?
Are there any exclusions? Look at the list of exclusions that resist coverage. Review the list to make sure it does not preclude coverage for any professional services or tasks that you need to be covered.
Is an extended reporting period an option under the policy? These provisions offer extensions of time to report claims that would otherwise fall outside the policy period—as long as the act/omission resulting in the claim occurred during the policy period.
Find out what extended reporting period options are available and discuss how much time the policyholder may need to report a claim.
Can the policy be customized or modified? Can extensions be added? Common additional coverage includes disciplinary proceedings or reduced retentions and may be of importance to your business.
Have there been any past tasks or activities at your business that could potentially result in a claim? Have there been past instances where a claim was filed? What was the result? Discussing the specifics of these with Rogue Risk can help determine what coverage specifications you need now, to prepare you for the future.
Other ways to protect your business, in addition to professional liability insurance, include the following:
- Establish a high standard for product and service quality control at your organization.
- Keep all company records up-to-date and accurate.
- Train employees thoroughly and properly.
- Ask Rogue Risk for safety and compliance information.
Best Professional Liability Insurance Carriers
I really like Hartford, we write a lot of business with them. They have a very broad appetite and a very solid policy.
Chubb is another really good option for professional liability. Hanover has a tremendous professional liability program, and a new player on the market that we’ve been writing a lot of smaller or startup consultants with is Coterie Insurance.
Now, that being said, if you’re working with Hartford, you’re working with Chubb, you’re working with Hanover, you’re working with this kind of A-rated world-class companies, you’re doing great.
For the most part, you’re not going to have any problem with their policies.
Where you can get yourself in trouble is when you move to a non-admitted market. This is a nuance. This term of admitted, non-admitted, I’m not going to explain it right now, but it’s just something you want to talk to your agent about.
Is this company admitted or non-admitted? And if they’re not admitted, it doesn’t mean bad, it just means that there are a few more questions you want to ask.
Finding the best professional liability insurance for your business can be tricky.
The good news is, that you’ll don’t have to purchase your business insurance alone. This is what we do here at Rogue Risk.
We work with small businesses to help them get the insurance coverage they need on their own terms at a price they can afford, making sure they’re properly covered, and explaining everything along the way.
That is why we focus on small businesses, and for you, making sure that you have the best insurance program possible for your business.
If this is the kind of relationship that you would like with your insurance provider, we would love to talk to you.
- You can call or text us at 518.960.6600,
- Click here to contact us via email.
I look forward to introducing you to a new way of viewing your insurance program.