If you are looking for a professional liability insurance definition, you will find that it is slightly different depending upon your profession. For example, a private practice physician's professional liability coverage will be geared toward the risks of the medical profession, whereas a realtor's concerns are related to buying and selling homes. However, it is essentially defined as legal protection from "errors and omissions" that may occur as a result of performing professional services. This means it will cover you for mistakes you make as well as your negligence – things you fail to do – that result in a client's loss.
In practice, it means that if a client claims that your services, advice, or expertise have caused a personal or professional loss, you have insurance that will cover your legal defense and the costs associated with resolving a lawsuit. Litigation can be a drawn-out process that can cost hundreds of thousands of dollars.
Professional liability insurance is a reliable way to protect your business assets. If you’re sued, professional liability insurance coverage helps pay for defense costs as well as any settlements or judgments that you must pay.
Professional Lawsuit Statistics
- From 1986 to 2011, the FDIC (Federal Deposit Insurance Corporation) collected $6.46 billion from professional liability claims.
- The FDIC spent $1.77 billion funding professional liability insurance claims and investigations.
- Since August 8, 2013, the FDIC has approved lawsuits against 122 institutions on behalf of 987 individuals.
- 52 other lawsuits have been approved involving anything from attorney malpractice to fidelity bond malpractice.
- In 2012, there were 369 authorized director and officer defendants.
If you want to talk more about your Professional Liability Risk or have someone look over your current policy call AJaye Brown with Southern Insurance Associates today at 706-996-8788 or Info [at] SouthernInsuranceAssociates [dot] com. Let us help you stay protected.