Professional liability insurance covers all people who have their own business, including those who operate from their homes. This insurance covers professionals against damages and protects them from financial losses. Professionals in any field are expected to have the right expertise and sufficient training in their particular fields, and they should also carry these out to the standard expected. But if their clients believe that the jobs were not done up to the desired standards, they could claim for damages.
Professional insurance policies cover you not only for accidentally causing injuries to someone or damaging buildings, but these may also cover conditions such as negligence, violation of good faith and imprecise advice.
Suppose, as a software provider, you have supplied a company with a software package that has not performed as per their expectations. In such a scenario, they will not be able to claim damages for bodily harm or personal damages, but they may claim for financial losses incurred due to the false claims of the software’s capabilities. Thus, you will have to compensate for the damages caused by your product.
There are some factors that need to be taken into consideration when you are thinking about buying a professional liability insurance policy. The main one is how much is the limit to insure against and what are the consequences. The best way to have some idea of how much to cover is to imagine what you will lose if you decide to sue the negligent party.
When considering having such a policy, you should first ensure that the insurance company has the capability to advise you on the best policy available. Since this is a highly specialized field, they should have enough experience in your field of expertise as well.
Make sure they have the professionals and legal teams necessary to represent you if a claim has been placed on you.
If you have a business in an industry that can be sued for any type of technical mistake, time delays or incorrect work, you will need to have professional liability insurance. It covers such a wide range of industries where mistakes could be made anytime, and you could be involved in a situation whereby you may have to defend your professionalism and expertise.
For example, if you are involved in the IT business, it could be for any hardware or software that has not performed up to expectation. Or if you are a carpenter or a plumber, you could find yourself being sued because the work has not been done to the expected standard and you may be short of time due to circumstances beyond your control; thus causing a lawsuit to be filed against you.
Professional liability claims vary from case to case and we can serve you with our professionals after understanding your unique case. Thus, we can advise you which policy would suit your situation best. Moreover, our friendly staff is available 24/7 to assist you.
Coverage generally does not cover any criminal prosecution if any, but may include defense costs. There are some industries where it is compulsory to have professional liability insurance and our insurance agents will be able to give you the best advice in this regard.
Here is a reason why you might need to have professional liability insurance. The client may keep adding to the project numbers, thus inevitably increasing the scope and extending the time of the projects. And there may be bad communication between the client and you. You may also think that you and the client have come to the same conclusion; but when you will deliver the result, it may not meet the client’s expectations. Even some third parties may get you into trouble though they may be the ones who have actually upset your client.
Insurance Agency
Frank Medina Insurance
Texas
3663 N Sam Houston Pkwy E Ste 600
Houston, TX 77032
(713) 955-2559
Hours of business
Monday - Friday
9:00 am to 5:00 pm
Closed Saturday and Sunday