What Does a Professional Liability Policy Cover?

Any time two individuals or entities do business with each other, there is the possibility that something could go wrong and legal action could ensue. Professional liability insurance in PA provides protection against lawsuits connected to the professional work you perform. The courts have defined professional work as that which requires special degrees, certifications, or training programs.

Professional vs. General Liability

When considering your coverage needs, it is important to distinguish what is and isn’t covered under a given type of policy. “General liability” may sound comprehensive in nature, but this type of policy typically does not cover issues of malpractice. If a customer files a complaint or suit arising from your professional advice or services, a general liability policy will not protect you. Your circumstances and the nature of your business help to determine your needs. Any business that maintains a brick and mortar office may need both general and professional coverage, while those that primarily run their businesses online may need more professional than general insurance.

Policies That Meet Your Needs

A professional liability policy can be tailored to your unique circumstances and needs. For example, if you know you need to reserve a certain minimum amount of funds for potential settlements, your policy can be written so that legal fees are covered separately; this prevents those fees from reducing the amount of money available to pay damages. Your policy may also cover employees whose work falls into the “professional” category.

Professional liability insurance in PA protects you, your business, and your employees from the financial devastation that can result from a malpractice claim.