Why You Need Liability Coverage From Your Insurance Company


Designed to cover professional practitioners against negligence claims made by clients or patients, professional liability insurance has several names. When used in the medical profession, it is commonly referred to as medical malpractice coverage. Notaries public also require this guarantee, but they refer to it as errors and omissions insurance. Real estate brokers, management consultants, and even website developers are all eligible for protection.

That is why?

Insurance is used to protect people in times of misfortune. Automobile policies protect them in the event of an accident; medical policies protect them against unforeseen illnesses; trade policies protect them against a number of accidents. If there is a fire, theft or an accident at work, the commercial variety will cover it.

Why you need it

Few businesses are fortunate enough to survive for a long period of time without being sued by a customer, client or employee. Liability coverage from an insurance company is the only shield most businesses have against litigation lawyers. This doubles when an employer is competing in a risky industry like construction. Why?

A construction site is arguably the most dangerous work environment in the world. Not because people are careless, but because doing anything, anything, is risky. The workers fall down the stairs; they stumble on ropes; they intersect. Builders must assume this risk and purchase the right amount of coverage from their insurance company to protect them from financial ruin. But that’s not all.

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These policies not only protect the employer, but they also protect their workers. If an electrician falls off a ladder or a carpenter cuts himself, a liability policy will pay his medical bills. Commercial coverage will also cover most attorney fees and court costs if someone sues you.

How much do you need

As you would expect, the size of the policy often depends on the size of the business. Most actuaries recommend at least $ 1 million in professional liability coverage for small businesses. Big businesses and corporations obviously need a lot more and often have huge policies. Because lawsuits are quite common in the medical profession, malpractice insurance is the most common form of liability coverage.

Most physicians have multi-million dollar malpractice coverage at all times. When working in a large firm, that number can be five or even ten times higher. Lawyers and accountants must also take responsibility due to the high rate of litigation in their fields. But what about everyone?

Many advantages

Any business that can be held financially responsible for not completing a project on time may need to take out a professional liability policy with their insurance company. This includes general contractors, architects, builders and many more. These policies also cover personal injury, breach of warranty, intellectual property, and safety. In short, any business that has more than one employee should have liability coverage.