Professional Liability Insurance Provides Cover For Employer Liability Insurance

Professional liability insurance, sometimes called error and omission insurance, protects your company from legal claims if you fail to do what you were contracted for.

Employers Liability, Company Insurance, Employment Contract
The implication of the Federal Employers Liability Act in terms of Company Insurance

This is in addition to any benefit you might receive from Employer Liability Insurance as specified in the employment contract. It can span many different types of employers such as health professionals, contractors, architects, web developers, etc.

Even if you are falsely accused of not doing your job correctly or are professionally negligent, this insurance will cover most of your legal costs. Professional liability insurance will pay any judgments against you based on your current policy.

Professional liability insurance coverage is not provided by a commercial general liability policy. By making sure you add professional liability insurance and employer liability insurance, you are protecting yourself from errors, contract and performance disputes, or any other types of professional liability issues. Negligence and malpractice both fall under the category of professional liability insurance.

Due to the increase in people requiring health care and the booming population growth, malpractice suits are fairly common. Doctors are overworked and everyone makes mistakes. By having professional liability insurance, on the chance a doctor gets sued, the insurance provider will pay whatever the maximum is on your plan. If a doctor is sued for 1 million dollars and the insurance covers 500,000, that leaves your company or the doctor to pay the remainder. This is the reason why it is very important to check around your area to see what the average is for various types of cases related to your company are included in the employment contract.

In recent years, professional liability insurance has expanded to cover professions such as technology consultants, software designers and engineers, internet service providers, marketing consultants, public relations, counselors of all types and even insurance agents. Basically anyone who claims to be an expert in an area and is paid for their expertise can be held liable - or negligent - if their work isn't what it should be, as specified in your employer liability insurance policy.

When choosing a professional liability insurance provider you should consider what they offer in the ways of legal defense. Many companies have a preferred attorney or a great defense team should the need for them arise. You don't want an average attorney to represent you. The insurance provider should have a specialized lawyer that will assist you with your liability cases. 

As the number of liability suits increases every year, you want to make sure you and your company is fully protected in the employment contract. There are many different professional liability insurance providers so you will want to consultant your insurance broker and compare their prices and coverage of the various policies. Some companies offer various types of insurance plans that might be beneficial and prove to be cost-effective in the longer term.