Understanding How Professional Liability Protects You
Professional liability insurance can cover you for a huge range of compensation payments. It can also cover you for any legal fees if you happen to have your business sued by a client. The compensation payment will normally take into account any financial loss that the client might have suffered. At the end of the day, professional liability insurance can cover you for a huge range of risks as well. What might seem like a small error on your behalf might be a huge expense, and this can really help you to safeguard your business.
Mistakes and Professional Negligence
Professional liability insurance really can cover you for any mistakes that might revolve around professional negligence or even any unintentional breaches of copyright or confidentiality. For example, if you are passing on any kind of confidential data and you copy the wrong person into the email then this is something that you could be sued for. Another thing that you might be covered for is if you are an architect and the house collapses. You do need to keep in mind that you won’t be covered for any kind of reputational damage that may have been caused as the result of your mistake.
Professional liability insurance can easily cover you for any injury that might have been caused by negligence or even if you are not able to perform your duty when you are on the job. If you wanted to be covered if someone slipped and fell in your office however then this would be under public liability insurance instead.
What about Consequential Loss?
Consequential loss is sometimes covered under the policy known as professional liability insurance, but you really need to check with your policy documents so that you can make sure. If your policy does happen to cover you for any consequential loss, then it’s important to know that there will be some exclusions. If you have loss from a computer virus for example, then you won’t be protected for this.
Does it Cover Contracts?
You have to tell your insurance provider if you have employees. This is even the case if they are contractors. Your professional liability insurance will cover you for any mistakes that your employees might have made as well, so you have to keep this in mind. Remember that it’s employer’s liability insurance that you will need if you want to cover any kind of compensation claims that have been made by your employees for injury or even illness.
Does it cover Defamation?
Defamation is when something written or spoken harms someone’s reputation and is proven false. The best thing about professional liability insurance is that it will cover you for defamation if it happens to be by accident, but it won’t cover you for anything that is purposely said. If you want to find out more then you need to contact your insurance provider to see if they can give you any kind of support. When you do, you can then count on them to help you out.