As a professional, you try to always offer your clients the very best advice you can, based on your unique expertise. If a client suffers a loss, either physically or financially, due to following your advice or due to your service, you may be legally liable for their damages. Massachusetts professionals can protect their businesses with professional liability insurance.
Professional services are fields in which your clients pay for your advice, guidance, or physical care, based on your training and expertise. No matter how diligent you are in your work, chances are that in today’s litigious society, you will get sued if a client suffers a loss due to your service or negligence. Legal fees, defense costs, and settlements can quickly add up, costing your business thousands of dollars. With professional liability coverage, you can better relieve your business of this financial burden.
Regardless of your specific field, Massachusetts professionals are all at risk for lawsuits. Any time you offer your expertise in exchange for payment, you are taking on the responsibility for standing behind your service. If your client follows your advice and is physically or financially harmed by it, MA laws allow them to sue for their losses. These costs quickly add up for your business. Even cases where you are found not liable can cause significant financial harm to your company.
All types of professional service businesses can benefit from professional liability coverage. Some common professions that need this coverage include:
Professional liability coverage comes in several varieties, specifically designed to protect against the risks certain professionals face. Most policies fall into one of three categories:
While often professional liability coverage is obtained for specific individuals, your insurance agent can help make sure you have proper insurance to protect against errors made by anyone within your company.
Most professional liability policies are claims-made policies, meaning that both the error and the lawsuit must occur while the policy is active. This type of policy is sufficient for many fields, and is often more affordable than the alternatives.
However, not all mistakes are immediately obvious. Professional liability coverage can be obtained to protect you from lawsuits about errors that occurred weeks, months, or even years in the past. With an occurrence policy, only the error must have occurred during the coverage period. Lawsuits can be filed for an extended time after the policy has expired. Your specific policy may have a set date of 6 months or 1 year, or longer, from expiration for lawsuits to be filed.
Professional liability is important coverage for Massachusetts businesses that provide professional services. By helping to pay for legal defenses and settlements, your business can be better prepared to continue to function with minimal financial repercussions, even when a mistake occurs.