Do you offer your clients the option of getting professional liability insurance as part of their total coverage packages? If so, it’s essential to communicate to them what the most common professional liability claim types are. Although no client likes to consider that they might be at risk of a professional liability lawsuit someday, the reality is that this is a consistent risk that needs to be mitigated with proper precautions and adequate insurance. Be sure to discuss these prime claim examples with your clients to help them understand the key reasons they should consider getting this type of insurance.
Common Professional Liability Lawsuits Generally Involve High Financial Losses
In general, most professional liability lawsuits center on the professional’s alleged failures in some way. They can often result in high financial losses for the individual or his or her company. Common claim types often allege:
- Negligence or errors and omissions
- Breaches of contract or failure to uphold contracted services
- Serious financial damages due to alleged oversight
While most professions could benefit from this type of insurance, there are a handful that are particularly susceptible to these sorts of claims. In particular, the following professions may be at especially high risk of a professional liability lawsuit.
- Doctors and other medical professionals
- Accountants such as CPAs
The Most Harmful Claims Could Occur in Areas Professional Liability Insurance May Not Cover
Although professional liability insurance can help provide your clients a strong safety net for certain situations, it’s critical to understand its limitations as well. Some harmful claim types could occur in areas this insurance does not usually cover, including the following types of incidents.
- Unlawful behavior or acts
- Issues covered under other types of insurance, such as workers’ compensation, general liability, and others
- Sexual harassment
- Intentional wrongdoing on the part of the company
- Damage to personal or company property
Having Adequate Business Insurance Could Help Mitigate the Damage of Claims
It’s important to make it clear to your clients that with adequate business insurance, including professional liability insurance, they could potentially mitigate some of the damage these types of claims can sometimes result in. The key is to find the right amount of coverage necessary in each individual situation. For instance, advise your clients to:
- Tailor coverage to the type of business they run
- Find a policy that won’t stretch the company budget too thin
- Ensure they have adequate liability coverage to help mitigate the damaging effects of a potential future claim
When you sit down to discuss the benefits of getting professional liability insurance coverage with your clients, it may be helpful to provide these illustrative examples of some of the most common professional liability claim types. Several types of professions may be at risk of these lawsuits, and having adequate coverage could help mitigate the fallout and provide a safety net. Guide your clients through these prime examples to help illustrate the need for professional liability coverage.
About Genesee General
At Genesee, we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.