Many professions are based on using your education, expertise, and experience to give advice, guidance, or care to clients. When your clients depend on you to guide their decisions and suffer a loss, they may place the blame on you and file a lawsuit for compensation. In Worcester, professionals from a variety of industries can obtain professional liability protection for financial protections in case of a lawsuit.
Clients can suffer losses in a variety of ways. Bad financial advice can lead to a loss of a couple’s retirement fund, while improper medical care can result in permanent injury or death. Whether of finances, physical items, or one’s health, these losses are felt deeply when they occur, causing clients to file lawsuits against you and your company. These lawsuits can be costly, with legal fees, court costs, and settlements, making it difficult for your company to say afloat. Professional liability insurance can help cover these costs, allowing you to continue to operate.
A professional service is considered to be one in which you offer your opinion or advice in exchange for payment. This covers a wide range of industries, including:
Though you do your best to correctly guide your clients, mistakes, oversights, and unexpected complications can arise. If physical or financial harm befalls a client due to your advice, you may be held liable by Massachusetts law. Professionals across all industries are at risk for facing such a lawsuit, costing your Worcester business time and money. Even cases where you are ultimately found not liable can do irreparable harm to your company’s finances.
Professional liability coverage is commonly divided into several types. The policy that is right for you depends on the industry you are in. Most policies fall into one of these categories:
Coverage can also be obtained for errors made by others in your company, to provide a broad range of professional liability protection. Your policy will typically cover the costs associated with a lawsuit, including defense costs, other legal and court fees, and any settlements or damages up to your policy limits.
In most cases, your insurance policy will only cover situations that arise while your policy is active. This is called claims-made and is the standard type of professional liability policy. Both the error and the claim must fall into the policy period for you to have coverage.
However, this is not always sufficient for all professionals. Sometimes errors are not discovered for weeks, months, or even years beyond the initial mistake. You may be able to purchase a policy with extended term limits. These occurrence policies only require that the error take place during the coverage period, and lawsuits can be filed and covered for an extended time after the policy expiration date. Your insurance agent can help you determine if you need this extended coverage.
Unfortunately in life, mistakes happen. If a client suffers a loss due to errors that you make in your professional role, lawsuits can result. Worcester professionals can protect their business from these expensive lawsuits with professional liability insurance coverage.