Professional Liability Insurance

Professional Liability InsuranceWe gain many words of wisdom from Uncle Bud while visiting in the coffee shop. The latest being how he feels about insurance. He stated, “I feel toward insurance the same as I feel toward toilet paper. I don’t like to buy it but sure am happy to have it when I need it”. Of course we all chuckled about his analogy. This comparison makes it easy for anyone to understand the importance of Professional Liability Insurance. While all of us may never need Professional Liability Insurance it is a given that we all benefit from the great invention of toilet paper.

Professional liability refers to liability that arises from a failure to use due care and the standard of care expected from a person in a particular profession. Most of us are aware of cases of malpractice insurance needed by those in the medical field. This includes doctors, dentists, nurses, hospitals and other health-related organizations. Medical Professional Liability Insurance policy covers bodily injury or property damage and may include personal injury such as mental anguish. We understand that not all adverse patient outcomes are results of negligence. However, all health care providers are human and accidents happen. That is one reason the insurance is so important.

Do other professional people need Professional Liability Insurance? To discuss this question let’s take a look at part of what Wikipedia has to say about Professional Liability Insurance:

Professional liability insurance (PLI), also called professional indemnity insurance (PII) but more commonly known as errors & omissions (E&O) in the US, is a form of liability insurance that helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such as civil lawsuits.

Professional liability insurance may take on different forms and names depending on the profession. For example, in reference to medical professions it is called malpractice insurance, while errors and omissions (E&O) insurance is used by insurance agents, consultants, brokersand lawyers.[1] Other professions that commonly purchase professional liability insurance include accounting and financial services, construction and maintenance (general contractorsplumbers, etc., many of whom are also surety bonded), and transport. Some charities and other nonprofits/NGOs are also professional-liability insured.

As we see in this condensed form of Wikipedia’s definition many professionals would benefit from having Professional Liability Insurance. As much as we may wish nothing would ever go wrong, it does. People make mistakes, things are over looked; let’s just face it, “stuff happens”. Remember what Uncle Bud had to say. Don’t you want your “toilet paper” in place before you need to use it? Get your insurance in place today!

SMA Services, Inc. can help you decide if you need this type of insurance. Give them a call. They will help you make the right choice on the amount and types of coverage you need according to the profession you are in.

Our Customer Service Representatives can help you. Just give us a call. 1-800-423-4332

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About Bob Cantlay

I have been working for the Southern Medical Association since 2004 and hold Bachelor of Science degrees in both Business Administration & Computer Science, as well as a Masters of Management. Outside of work, my wife and two kids are the center of activity; but occasionally I get away long enough to play Ultimate (Frisbee Football). I also have a newfound interest in kayaking.

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