The Importance Of Professional Liability Insurance

Orange County business consulting attorneys can explain the details of obtaining a professional liability insurance policy.

What Is Professional Liability Insurance?

Professional liability insurance will provide coverage for a business that general liability insurance will not. Examples of its use are for negligence, poor advice, errors and omissions, or misrepresentations that are costly to the client or another party. This insurance is important if there is a lawsuit filed. It can be extremely expensive to defend a legal filing even prior to its conclusion.

With professional liability insurance, the attorney’s fees and other costs linked to the case can be reduced as long as the lawsuit is covered by your particular policy. In general, this insurance will not provide protection for criminality or fraud, injuries to clients, intellectual property matters, and incidents of false advertising. A general liability policy might provide protection if a client suffers a bodily injury. This insurance can be beneficial to a wide number of businesses, but it is especially useful for attorneys, medical professionals, insurance brokers and more.

Cost Of Professional Liability Insurance

How much professional liability insurance costs can vary. The more coverage you purchase, the more costly it will probably be. Often, the limits are sold incrementally with one million dollars per claim with a $1,000 deductible. If you need more coverage, it might be possible to buy more with an umbrella policy. Many of these policies are sold based on “claims-made.” What this means is that the coverage will only go so far as claims that were made while the policy was in effect. In some instances, an insurer might have a retroactive policy for claims you didn’t know about. At the time of the policy’s expiration, it might be smart to buy extended coverage. You will be covered for claims that were made while you had the policy, but didn’t know about.

Call Experienced Orange County Business Consulting Attorneys

If you have questions about professional liability insurance, call 949-861-2524 to speak to business attorney Orange County Daily Aljian LLP today.

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