Professional Liability Insurance
Professional Liability Insurance is a type of coverage that protects individuals or businesses against legal liabilities that may arise in the course of their professional activities. It is designed for professionals—such as doctors, lawyers, engineers, and others—providing protection against claims resulting from professional errors, omissions, or negligence.
This insurance not only compensates the insured for financial losses incurred but also covers the costs of legal defense. By mitigating potential litigation risks, Professional Liability Insurance enables professionals to focus on their work with greater confidence and security.
Professional Liability Insurance provides protection against compensation claims that the insured may be legally required to pay as a result of inadequate and/or erroneous actions in the course of performing their professional duties, which cause loss or damage to third parties.
These policies are issued on a “Claims Made” basis, meaning coverage applies only to claims first made against the insured during the policy period, regardless of when the incident occurred (subject to policy terms and conditions).
Situations Covered Under Professional Liability Insurance:
This coverage applies to compensation claims brought by third parties arising from:
-
Failure to perform duties due to negligence
-
Errors or misstatements
-
Misrepresentation
-
Breach of confidentiality
-
Failure to provide professional services
- The error or accident must occur during the activities defined within the insurance policy and within the policy period.
- A claim for compensation must have been made in connection with the liability arising from the accident.
- Unless otherwise stated in the policy, the liability of employees engaged at the insured’s workplace is also covered.
- Subject to the insurer’s acceptance, certain additional expenses may also be included within the scope of the policy.