Do You Need Malpractice Insurance? You Might Be Surprised!

Posted July 12, 2022 in Malpractice Insurance

3 Minute Read: 

Doctors aren’t the only professionals who must protect themselves from lawsuits arising from mistakes made on the job. 

Whether you call it malpractice, professional liability, or errors and omissions insurance, this kind of coverage is designed to protect you financially from any potential damages your client, customer, or patient might incur relative to your services.

Some of the professionals who can benefit from professional liability insurance include:

• Accountants
• Architects
• Attorneys
• Contractors
• Data privacy professionals
• Design professionals
• Healthcare workers
• Insurance brokers
• Independent financial advisors
• Physicians
• Real estate brokers
• Technology and media specialists 
• And more

This type of insurance is meant to defend professionals and their companies against claims of negligence directly relating to services or products provided by the professional that are not covered by their general liability policy. 

Let Gallant Risk & Insurance Services, LLC provide you with a review of your current policy and a reasonable quote for the custom policy you need to protect your livelihood! Call our Corona, California, office today at (951) 368-0700!

How Is Malpractice Insurance Different From General Liability Insurance?

General liability insurance covers the following types of mishaps:

• A customer is injured at the professional’s place of business
• You or your employee unintentionally cause damage to a client’s property

This type of insurance does not cover injury to an employee, as this is included in workers’ compensation insurance, but it can cover damage to their property.

Professional liability insurance, also known as errors and omissions insurance, helps protect your business if your client claims financial damages from the professional service you provide. 

Some scenarios which may call for professional liability coverage include:

• An accountant makes a calculation error costing their client a large sum of money.
• A web developer makes a crucial mistake on a customer’s e-commerce site, resulting in lost revenue.
• An attorney has provided inadequate counsel for their client, resulting in financial loss or incarceration.
• A contractor incorrectly installs electrical components, resulting in damage or injury.
• A real estate broker fails to disclose a serious defect in a home they helped sell.

How Much Does Professional Liability Insurance Cost?

The cost of your policy will depend on the type of business you have and the level of coverage you seek. 

For this reason, several options exist, and a visit with a reputable business insurance company can assess your needs and recommend an appropriate plan.

Most Common Professional Liability Plans

Because most claims involve misrepresentation, negligence, violation of good faith, and providing erroneous advice, management liability and business owner’s policies are common.

• Management liability insurance coverage helps protect business principals against substantial financial losses from potential lawsuits. 
• A business owner’s policy can include both general and professional liability coverage. These policies can be tailored to meet your business insurance needs to cover any situation or risk that may arise.

Coverage for data privacy violations or leaks can be added to your policy if your company deals with personal information.

Gallant Risk & Insurance Services, Inc. in Corona Provides Reliable Business Insurance

Don’t lose your business because of a lawsuit; get the protection you need! 

As your business grows and becomes more successful, you’ll need to revisit your insurance policies to ensure you are fully covered.