Designed to cover medical professionals against claims of negligence made by clients or patients, professional liability insurance goes by many names. When used in the medical profession, it is commonly called medical malpractice coverage. Notaries public also require this security, but refer to it as errors and omissions insurance. Real estate brokers, management consultants, and even website developers are eligible for protection.

What is it for?

Insurance is used to protect people in case something unfortunate happens. Auto policies protect them in the event of an accident; medical policies protect them from unexpected illnesses; trade policies protect them from a number of setbacks. If there’s a fire, theft, or an accident at work, the commercial variety will have you covered.

Because you need it

Few companies are lucky enough to survive for an extended period without being sued by a customer, customer or employee. Liability coverage from an insurance company is the only shield most companies have against trial attorneys. This is doubled when an employer competes in a risky industry like construction. Why?

A construction site is possibly the most dangerous work environment in the world. Not because people are careless, but because doing something, anything, is risky. Workers fall down stairs; they trip over ropes; they cut. Builders must take this risk and purchase the correct amount of coverage from their insurance company to protect them from financial ruin. But that is not all.

These policies not only protect the employer, but also protect their workers. If an electrician falls off a ladder or a carpenter is cut, a liability policy will pay your medical bills. Business coverage will also cover most attorney fees and court costs if someone files a lawsuit against you.

How much do you need?

Unsurprisingly, the size of the policy often depends on the size of the company. Most actuaries recommend at least a million dollars of professional liability coverage for small businesses. Big companies 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 doctors have multi-million dollar malpractice coverage at all times. When they work in a large practice, 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 the others?

Numerous Benefits

Any business that can be held financially responsible for not completing a project on time may need to purchase a professional liability policy from their insurance company. This includes general contractors, architects, builders, and many, 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 must have liability coverage.