If you offer professional services directly to your clients, you may need malpractice insurance. You could be in the cosmetology business, or construction, or engineering, or accounting, and need malpractice insurance. This form of coverage is also known as errors and omissions insurance, or professional liability insurance, and it can cover a huge range of professional services that involve physical, financial, or emotional risk to the client. It can protect you from losing your business, home, and savings in a malpractice suit.
If you need a comprehensive malpractice insurance policy, contact an independent agent in the Trusted Choice® network. Your independent agent will work with you to analyze your specific risks and identify coverage gaps in your current policy. An independent agent has the ability to find a policy that meets your needs and budget constrictions. To get the insurance you need, contact a Trusted Choice member agent.
All of these claims fall under the coverage of a typical malpractice insurance policy. If there is a risk of an errors and omissions suit in your profession, it would be wise to purchase protection as soon as possible.
Malpractice insurance is professional liability insurance for a broad range of service providers. A malpractice policy is specialized to deal with the risk of lawsuit due to errors and omissions in your work, such as bad advice, accidental injury, incorrect information, or unintentional misrepresentation.
If a client suffers physical, financial, or emotional harm as a result of something you did or didn't do during the course of your transaction, that client could choose to file a malpractice claim against you. Malpractice insurance provides the settlement cost, court fees, and your legal defense, up to the limits of your policy. That way you can keep your business running, and keep your savings account intact.
If you offer services in the context of a larger business, such as a salon, or an agency, your employer probably has liability coverage to protect the company. That does not mean your employer has coverage to protect you.
While there might be limited liability coverage for you through the company policy, many service professionals are surprised to find that when they face a lawsuit, their employer is nowhere to be found. In fact, some employers may actually pass the blame from the business to you as an individual, to save face and save money. Either way, you need protection of your own, to guard your assets and your livelihood.
In addition to financial protection, malpractice insurance can also offer:
If a client files a malpractice claim, almost everyone involved in the transaction in question will be named as defendants, until responsibility can be eliminated. Although there can be exceptions, the client is not supposed to be told which professionals are covered and which ones aren’t.
Malpractice insurance companies are not legally allowed to divulge this information. If you’re cleared of responsibility, you cannot be kept in a lawsuit just because you have malpractice insurance. Moreover, the worse situation would be to face the suit without malpractice coverage.
When you purchase malpractice insurance, you’re buying an insurance policy that will help offset the costs of a client’s claim. Your policy is designed to pay for legal defense, other legal fees, and possibly settlement amounts. Some malpractice lawsuits can reach into the millions of dollars if you’re found guilty. Even if you’re innocent, the cost of legal defense can be nearly as high, with lawyer fees ranging from $100-500 per hour.
It’s important to distinguish between the types of malpractice insurance, as follows:
Although an occurrence policy offers a permanent benefit, it’s costly. On the other hand, comparable claims made policies with tail coverage have lower malpractice insurance rates, offering nearly a 35% discount in some cases.
There are other factors to consider when searching for affordable malpractice insurance, including:
If you’re just starting your chosen profession, your employer may have information regarding personal malpractice insurance. If you’re starting your own business or working contractually, your state insurance department should have valuable information on where to start your search.
You obviously need a policy that’s tailored to your specific needs, but there are some other things you should look for when purchasing malpractice insurance, including:
One of the best ways to purchase malpractice insurance is to contact an independent agent in the Trusted Choice network. When you work with an independent agent, you’re working with a reliable insurance guide who has your best interests in mind.
Unlike “captive” insurance agents, your member agent isn’t bound to a specific group of insurance products and can compare policies and malpractice insurance quotes to find the best fit for you. For truly personalized service and comprehensive coverage, contact an independent agent in your area today.