What is Professional Liability Insurance?

When clients hire professionals, they expect the hired professional to correctly apply their expertise. Serious errors could result in liability lawsuits filed against the expert. Professional liability insurance can help Texas professionals shield themselves from this type of risk.

Professional liability insurance provides specialized commercial coverage for those who work in professional capacities. Coverage normally protects against various lawsuits over errors in work.

Who in Texas needs to have professional liability coverage?

Professionals who have specific training should consider professional liability coverage. Most people who purchase this coverage are white-collar workers, and some might be required to have coverage.

Some examples of people who would likely benefit from professional liability’s protections are:

  • Doctors and other medical providers
  • Lawyers and other legal professionals
  • Financial advisors and planners
  • Certified public accountants and bookkeepers
  • Real estate brokers and agents
  • Engineers and architects
  • General contractors and tradespeople

While most of these professionals may benefit from having professional liability coverage, not everyone needs the same policy. Insurance companies offer a variety of professional liability policies for different fields. An insurance agent who knows this coverage well can help Texas professionals find a policy that’s designed for their field of work.

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Do contractors need professional liability coverage?

Contractors might purchase professional liability policies to protect themselves when giving customers advice. A contractor could be held liable if they gave bad advice that ultimately cost a customer. Professional liability, specifically E&O coverage, may protect such an issue.

What are the different kinds of professional liability policies?

Many professional liability policies are termed either malpractice coverage, or errors and omissions coverage. The various malpractice and E&O policies that insurers offer include

  • Medical Malpractice Coverage
  • Legal Malpractice Coverage
  • E&O Coverage
  • D&O Coverage

D&O stands for directors and officers coverage, and is primarily used to protect leaders of businesses and nonprofits.

Do professionals receive professional liability coverage through their employers?

Employers frequently carry professional liability policies that extend coverage to their employees, but professionals should be aware of a few considerations before relying solely on an employer’s policy.

First, an employer’s policy often will only cover employees. Independent contractors and subcontractors are less often included within an employer’s coverage.

Second, an employer’s policy usually only applies when performing work for the employer. Coverage likely won’t apply to secondary gigs or charitable work, although other businesses and nonprofits might have their own policies that apply in those situations.

Before relying on employer-provided coverage, professionals should discuss their situation and employer’s policy with an experienced insurance agent. An agent can more thoroughly explain different situations where an employer’s coverage probably would or wouldn’t provide protection. 

Professional Liability Insurance Texas

How much are premiums for professional liability policies?

Premiums for professional liability policies vary significantly. The field of work, level of work (e.g. doctor vs. nurse), number of people covered, and recent claims are just a few of the details insurance companies commonly consider. Rates also differ by state, and according to many other factors.

The easiest way to find out how much professional liability will cost in a specific situation is by comparing custom quotes from different insurance companies. An independent insurance agent, who isn’t connected to any one insurer, can help with quickly getting custom quotes.

How can Texas professionals get professional liability insurance?

For help finding professional liability insurance contact the independent insurance agents at Wise Insurance Group. Our agents have worked with Texas professionals in many different fields, and we’ll work closely with you to find a customized policy for your work. With our assistance, you can have confidence that you’re well protected.

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