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One of the main fears of any service professional is of a lawsuit, filed against them and their service. However, in today’s grievance-prone society, lawsuits are more and more of a common occurrence in business proceedings. While providing a service, the professional is constantly under the risk of a lawsuit filed against them, which can result in an enormous financial burden.
However, there are a number of ways in which the professional can protect him or herself against such claims. Professional liability insurance, also known as errors and omissions insurance, is a type of liability insurance that protects professionals against the various claims filed by a claim. Whether the grievance involves a breach of duty, negligence, or misleading claim, professional liability insurance can protect the professional from any mistake on their part.
Who Should Consider Professional Liability Insurance?
In general, any professional that provides a service for a client should obtain some sort of insurance. This covers a wide range of professions and industries, such as the consulting, medical, and financial field. For example, individuals in the medical profession often integrate professional liability insurance in their practices, in order to protect against malpractice claims. Frequently, dentists and doctors are required to possess insurance when opening their own practice. Additional common professions that benefits from liability insurance include lawyers, brokers, and general contractors. If the individual intends to provide a service that involves a degree of responsibility, they are well advised to consider obtaining professional liability insurance.
Why Purchase Professional Liability Insurance?
Throughout an individual’s career, a few mistakes are bound to occur. However, even a single mistake can lead to an uncomfortable situation for the professional. Insurance aids in protecting the individual against claims made against them, in the case whether they commit a miscalculation or error. Without professional liability insurance, the professional may be forced to go through a lengthy lawsuit; a time-consuming process that may result in immense financial losses. Depending on the coverage and additional factors, professional liability insurance can help prevent against these undesirable situations.
Author Bio :- Rachel Hyun Kim is a writer for Resource Nation, an online resource that gives advice such as lead generation to small businesses and entrepreneurs. Rachel has written on a variety of topics, ranging from merchant services to VoIP phone systems.