Professional Insurance Coverage Is A Smart Choice
Insurance that protects professionals such as accountants, lawyers and physicians against negligence and other claims initiated by their clients. It is required by professionals who have expertise in a specific area because general liability insurance policies do not offer protection against claims arising out of business or professional practices such as negligence, malpractice or misrepresentation.
Professional insurance with 1st Quality insurance
A type of professional liability insurance purchased by health care professionals.
A type of professional liability insurance that protects all types of technology professionals if a client alleges that you were professionally negligent or failed to perform duties as promised in your contract.
Directors & Oficers
A type of professional liability insurance payable to the directors and officers of a company, or to the organization(s) itself.
Errors & Omissions
A type of professional liability insurance that protects the insured against liability for committing an error or omission in performance of professional duties.
Professional Liability Coverage Consideration
Although there are a few exceptions (e.g., physicians, architects, and engineers), most professional liability policies only cover economic or financial losses suffered by third parties, as opposed to bodily injury (BI) and property damage (PD) claims. This is because the latter two types of loss are typically covered under commercial general liability (CGL) policies.
The vast majority of professional liability policies are written with claims-made coverage triggers. In addition, professional liability policies contain what are known as “shrinking limits,” meaning that unlike CGL policies (where defense costs are paid in addition to policy limits), the insurer’s payment of defense costs reduces available policy limits. Accordingly, when attempting to determine appropriate policy limits, insureds must consider the fact that because defense costs are often a high proportion of any claim settlement or judgment, they must usually purchase additional limits. The most common exclusions in professional liability policy forms are for BI, PD, and intentional/dishonest acts.
- Since defense costs are often a high proportion of any claim settlement or judgment, one should consider usually purchase additional limits.
- The most common exclusions in professional liability policy forms are for BI, PD, and intentional/dishonest acts.
Professional liability insurance coverage can protect you from:
Failure to use reasonable care, resulting in damage or injury to another.
Improper, illegal, or negligent professional activity or treatment, especially by a medical practitioner, lawyer, or public officials.
Fraudulent, negligent, or innocent misstatement, or an incomplete statement, of a material fact.
Errors & Omissions (E&O) Consideration
The first step in preventing E&O problems is to have well-trained employees who can service accounts and handle production and risk management. More important, however, is for company principals to make sure the employes are managed effectively. Most E&O claims result from poor management rather than lack of knowledge. Owners who practice ‘crisis management,’ running to put out fires that shouldn’t have started in the first place, will tend to face E&O problems more often than those who run tight ships.
These are the most common types of E&O claims from insurance agencies, in order of frequency:
Generally, a client may recover from the agent the loss they sustained because of inadequate or nonexistent coverage when the agency undertook to procure the insurance or failed to notify the customer/prospect properly if they were unable to obtain the requested coverage.
Misrepresented the Coverage
In such cases, either the agency led the client to believe that coverage was in force or that the policy covered certain perils that it did not.
Failed to Notify Cancellation
It’s important to note that in direct billing, in which cancellation notification is the insurer’s responsibility, an agency may jeopardize itself by contacting the insured when they receive a lapse notice.
Errors & Omission Coverage Types
The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm. Professional liability insurance may take on different forms and names depending on the profession, especially medical and legal, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service.
Accountants Professional Liability
Whether you are a bookkeeper, tax preparer or Certified Public Accountant, you have potential exposures just by doing business.
Lawyers Professional Liability
Whether a small or mid-sized law firm, your business has potential exposures as client expectations are increasing and malpractice lawsuits are becoming more common.
Miscellaneous Professionals Liability
As a professional operating in today’s increasingly litigious environment, you could easily be subject to allegations by unhappy clients who may feel they’ve been harmed by your actions or inactions.
Professional Liability for Financial Institutions
Professional liability coverage is designed to protect all types of financial institutions and their directors, officers, and employees from claims relating to the rendering of professional services.
Real Estate Professional Liability
As real estate professionals, while you may be committed to your clients, they may not always return the favor.
Design Professional Liability
As a design professional, you know that every successful job begins with a clear understanding of your customer’s needs paired with your plan to meet them.
Directors & Officers (D&O) Consideration
Directors and Officers (D&O) liability Insurance (often called “D&O”) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies.
D&O policies can take different forms, depending on the nature of the organization and the risks it faces, so it’s best to seek out an insurance company with deep experience in this specialized field. The policies are generally purchased by the organization to cover a group of individuals rather than by the individuals themselves.
Anyone who serves as a director or an officer of a for-profit business or nonprofit organization may be at risk of a personal claim as a result of that position. A directors and officers liability policy insures them against personal losses. It can also help reimburse the business or nonprofit for the legal fees or other costs it may incur in defending those individuals against a lawsuit.
5 Reasons Directors & Officers (D&O) Insurance is Needed
Organizations increasingly consider personal liability coverage as one of the most important.
Claims Related To Regulatory Actions
There has been a 23% increase in regulatory actions against Directors & Officers.
43% of Directors & Officers desire more coverage in the event of company bankruptcy or insolvency.
Wide Range of Claimants
Claimants such as shareholders, customers, and government entities.
Claims Becoming Increasingly Common
36% of all corporations have reported claims over the past 10 years.
Getting A Professional Liability Insurance Quote
Quoting online with 1st Quality is quick & easy, just answer a few simple question, give us some information about your organization & yourself & we will give you an accurate quote to consider.
What you will need to fill the professional liability insurance quote online
Below are a list of items you will need to provide to get a professional liability insurance quote from us online. The more accurate the information is, the more accurate your quote will be.
What is the name of the organization, address, phone, etc.?
What does the organization do?
You will need to provide proof of professional licenses.
Any Disciplinary Actions
You, your business’s current and past partners, officers, directors, board members, trustees, or employees, ever been subject to disciplinary action by authorities as a result of professional activities?
Current Insurance Information
What insurance company currently with? Have you had any claims?
Advantage of 1st Quality Insurance Agents
Our agents are here for you to make sure that all of your insurance needs are met. We will go the extra mile to make sure you are completely satisfied with our services. Let us help you find the right coverage today.
Our agents will try to find you the best coverages possible, without compromising coverages.
With access to some of th best (A,A+) Rated Insurance Companies, we have you covered.
All claims are to be reported directly to the insurance company, however, our agents will assist you with your claim if the need arises.
Explaining your coverage
Our agents will take the time to explain any questions you may have about your coverages.
When shopping your insurance, our agents will look to provide you with any eligible discounts.
Why choose 1st Quality Insurance Group?
We have over 25 years of insurance experience, local agents across 18 states and the ability to provide you a personal auto quote in minutes.
- Experienced licensed professionals.
- Fast auto insurance quote time.
- Personalized friendly service.
- Work with the highest (A) Rated Insurance Companies.
- Local community presence.