Your quote is based on several common factors to give you a clear picture of the cost you can expect, though an independent agent can shop around and maybe even improve your rate!
NOTE: This quote is not final, though we did work with professional actuaries to help get you a ballpark figure to get started.
Any professional who operates their own business or provides a service to customers should protect themselves with professional liability insurance—this, of course, is in addition to any business policy they may already have. This protects the insured against the hefty financial loss that can come with any lawsuit filed against them by their clients.
Simply put, because people love to sue. And while most professionals who work underneath a parent company, hospital, or firm already have some form of coverage, it still has its limits. More often than not, the existing coverage will still leave you underinsured with some sizable protection gaps. If something goes wrong and you damage someone or some business financially, the legal fees can be catastrophic to an individual.
Any lawsuit, no matter if it ends up in court or is settled without it, will be expensive to resolve. Professional liability insurance is designed to help protect you from what could be a serious financial burden.
Think of professional liability insurance as coverage that protects you from client lawsuits after financial damage or loss, whether that's from the things you did as a part of your contract, OR things you neglected to do that may have led to harm. If you're caught without coverage, you’ll have to pay some pretty expensive legal defense costs out of pocket.
Within professional liability insurance are unique policies like errors & omissions insurance and malpractice. Errors & omissions is designed to protect professionals who provide services, like consultants, accountants, etc., whereas malpractice is designed to cover medical professionals.
There are two different professional liability coverage types: a claims-made and an occurrence policy.
A claims-made policy must be in effect both when the lawsuit is filed and when the incident in the suit took place. This type of policy is the most common, and is usually less expensive.
An occurrence policy covers any incident that takes place during the coverage period, even if the actual lawsuit is filed after the policy expiration. This type of policy provides more comprehensive coverage and is higher priced.
Errors and omissions liability insurance, also called E&O insurance, is a form of professional liability coverage. E&O insurance was designed for those who provide advice or services like lawyers, consultants, insurance agents, and architects. It protects against lawsuits that claim a financial loss occurred based on bad information or negligent advice.
Malpractice insurance is a form of professional liability coverage. This specific form of insurance was designed for medical professionals like psychiatrists, podiatrists, and gynecologists. It protects against lawsuits that allege negligence or mistakes. If you work in the healthcare industry, malpractice insurance is an absolute must.
Yes. And maybe no. In most cases, whether you work for a hospital, a law firm, an insurance brokerage, etc., you should be protected under your employer's professional liability coverage. However, that policy will have its limits. And if there's already been a claim filed against the policy, the company's coverage limit may have already been reached.
Beyond that, your employer is most concerned with their own coverages, which may leave a few gaps in the coverage that's more important to you. You should always speak with your employer and your independent agent to make sure you have the right coverage for your needs.
No matter what you do for a living, there's risk. And the more risk involved, the higher the insurance premiums. So you can imagine that a policy for a neurosurgeon or anesthesiologist will cost quite a bit more than a professional liability policy for an independent insurance agent. For that reason, it's hard to ballpark a figure without knowing more about the risks you face.
To get exact pricing specific to your profession, speak with an independent insurance agent. They'll help you find the right coverage and policy at the perfect cost for your budget.
With access to multiple insurance companies, independent insurance agents are unlike any other type of agent out there. They’ll help find you the best coverage options and most competitive prices, all for free. To find a local independent insurance agent, click here.
PROFESSIONAL LIABILITY INSURANCE
Find the perfect agent to shop multiple insurance companies on your behalf, saving you time and money.
If you're a professional who advises, treats, or provides a service for clients regularly, professional liability insurance is a must-have to protect both you and your business practice from a lawsuit.
Talking with a local independent independent insurance agent is the best place to start when considering professional liability insurance. They can guide you in the direction of the right policy and carrier for your business and answer any questions you may have.
What Is Professional Liability Insurance?
Simply put, professional liability insurance is a form of business coverage designed to protect professionals against liability costs resulting from errors or omissions in the services they provide.
It's important to understand that in nearly every profession, customers and clients can—and will—sue if the job you did for them doesn't meet their standards. And if you're caught without coverage, you’ll have to pay some pretty expensive legal defense costs out of pocket, enough to potentially ruin your career goals.
Why Do I Need Professional Liability Insurance?
If you work for a large company, firm, or clinic, you probably already have existing general liability coverage, maybe even professional liability as well. But that coverage has its limits and may not be enough to protect you.
No matter how experienced you are, accidents will happen. And sometimes even the slightest mistake can lead to some significant financial damage for your clients' business. And when that happens, you can expect a lawsuit to follow.
In any lawsuit, no matter whether it ends up in court or it's settled out of court, it's going to be expensive to resolve. Professional liability insurance is designed to help protect you from what could be a serious financial burden.
What Does Professional Liability Insurance Cover?
There are a couple of different professional liability policies based on what you do and provide to customers or clients.
Professional liability, is also known as errors and omissions liability insurance, or E&O insurance. Policy coverage is designed for those who provide advice or services like lawyers, consultants, insurance agents, and architects. It protects against lawsuits that claim a financial loss occurred based on bad information or negligent advice.
E&O coverage levels
Covered
Not Covered
Mistakes made at work
Services not performed
Breach of contract
Missing contract deadlines
Professional negligence
Occurrence/Tail
General liability
Workers' compensation
Commercial property
Employment practices liability
Commercial auto
Lawsuits are pretty common in nearly every professional industry, and finding the right liability coverage starts with understanding the two distinct types of policies available.
A claims-made policy must be in effect both when the lawsuit is filed and when the incident in the suit took place. This policy type is the most common, and is usually less expensive.
An occurrence policy covers any incident that takes place during the coverage period, even if the actual lawsuit is filed after the policy expiration. This type of policy provides more comprehensive coverage and is higher priced.
An independent insurance agent can help answer any questions you may have about liability needs, coverage, and specifics, and can help steer you toward the right protection for your profession.
What Does Professional Liability Insurance NOT Cover?
It’s important to remember that professional liability insurance doesn’t cover everything. For example, it won’t help your business with these kinds of claims.
Bodily injury or property damage: You’ll want to get a general liability insurance policy to help cover your costs if someone is injured on your business premises or if you damage another's property.
Work-related injuries or illnesses: If your employees get hurt or sick from their job, you’ll need workers’ compensation insurance to help them recover and return to work.
Data breach: You’ll need cyber liability insurance if your business handles any sort of confidential or sensitive transactions with clients including personal or info, financial info like email addresses, passwords, banking account info, etc.
How Much Professional Liability Insurance Do I Need?
The best way to determine the amount of professional liability coverage your business needs is to speak with an independent insurance agent. Together they'll get to know you and your business and help determine what's right for you. They'll look for coverage gaps between your needs and your employers, look at the services you provide and discover what's right for you. In general, these are the biggest factors in determining your full coverage needs.
Key factors in professional liability needs
Business size: How big is your business? What are your sales? How many customer interactions do you have on a daily basis? A larger company will need more liability protection.
Number of employees: Sole proprietorship? Large business? The more employees, the larger the possibility for mistakes and lawsuits and the more coverage you'll need.
Business location: Where you deal with your customers matters. The larger the risk, the more protection you'll want to have in place.
Services provided: Different services come with different risks. Teachers. Architects. Police officers. With each comes their own perceived risk and need for more coverage.
How Much Does Professional Liability Insurance Cost?
When it comes to insurance, the pricing system is pretty simple to predict: the more risk involved, the higher the insurance premiums. For example, a policy for a neurosurgeon or anesthesiologist will be more costly than a professional liability policy for, say, an independent insurance agent.
To get exact pricing specific to your profession, speak with your local independent insurance agent. They'll be able to help you find the proper coverage and cost.
Your Independent Insurance Agent Has Your Answers
Whatever you need, your agent has your back. With a brief intro into the terms, discounts, and process of your professional liability insurance, you know the kinds of questions to be asking. Your agent will ask you all about your line of work, its risks and your goals, and will help find the perfect blend of coverage at the right cost for you.
Best Professional Liability Insurance Companies
More Choices
Our independent insurance agents work for you, not the insurance companies. That means you always get the best coverage options to choose from.
Better Prices
When you have options from multiple companies, it's easier to find the best coverage at the right price, at no extra cost to you.
Local Services
There's an independent agent in every city who always understands the insurance coverage you need most based on local laws and needs that apply to you.
What Our Customers Are Saying
Work Done For Me
I looked at different individual companies, but it was so time-consuming to fill out each individual application and keep track of them all. Trusted Choice got back to me quickly and gave me an option that worked. I ended up with Travelers, which has a great price. The online process was pretty easy. Plus, they did the legwork for me. It was a great experience.
June of Medina, NY
Multiple Options
I tried finding insurance myself but I wasn't coming up with very much. I contacted Trusted Choice and they looked at various options and presented it to me. Everything with the agent went very smoothly... He knew exactly what we wanted and searched accordingly. I was able to choose the one that I thought was best so it worked out for me. I'm happy that I did it that way.
Dean of Loveland, CO
So Easy
I needed insurance for the home that I was buying and based on the pricing, I went with Trusted Choice. The process was all done online and I didn't really have to do too much. The website was also easy to use and navigate and it was not overly intimidating. Everybody that I've dealt with also seemed good and professional. It was a positive experience.
Jacob of Mesa, AZ
One-On-One Attention
Every year I search for insurance to make sure that I’m getting the best bang for my dollar. I went with an independent agent because if I go through them, I get that one-on-one instead of being just a number.... The experience was great.
Rudy of Altamonte Springs, FL
Really Helpful
TrustedChoice.com was real helpful when I needed to get insurance. The agent gave me the basics of what I'd be getting if I got insurance with them.
Christine of Chipley, FL
Multiple Agents
I needed a different independent agent to get insurance and I went with Trusted Choice. Their website was helpful in connecting me to two or three other agents that I was able to speak to. Their site did what I needed.
George of North Haven, CT
More Coverage
Trusted Choice's online process is super easy. They pulled most of the information and I ended up going with one of their recommendations. Aside from them, everybody else was too expensive. Plus, the Trusted Choice agent offered more coverage.
Kirstin of Colorado Springs, CO
Great Match
Everybody at TrustedChoice.com was helpful and pleasant. They set us up with a great match and gave us our best option and price.
Tawny of Hubert, NC
Best Coverage and Rates
I did a lot of searching for insurance and I went with a Trusted Choice agent because they provided the best rates and coverage. I haven't had a claim but I know I'm covered and that's good news. I would recommend Trusted Choice.