Most professionals giving services or advice to their clients protect themselves by having Professional Liability Insurance. This insurance, also known as PLI, should protect professionals like accountants, lawyers, and physicians against claims of negligence and other cases.
PLI's terms differ depending on the field. For instance, medical practitioners have medical malpractice insurance, while real estate agents have errors & omissions (E&O) insurance. But it all has the same purpose: to eliminate possible financial loss due to not having appropriate protection.
In this article, you'll know the three most common coverages PLI offers to its subscribers.
The first coverage on the list is against negligence accusations. Once a professional is sued or called out due to incompetence or failure to take proper work care. It can be giving clients poor advice, resulting in financial loss or physical harm.
For example, a doctor has recommended the wrong prescriptions to his patient, which caused further complications. When the patient files a case, his PLI should cover the cost of an eventual settlement.
Failure To Deliver Services
This next case is one of the most common coverages a PLI provides. Generally, this means that your client might sue you if you fail to provide them with the promised service.
Say that you're a financial consultant and promise 30% of returns on investment in five months. However, if only half of the percent is received after the set date, your client might come after you.
This part is where your insurance should come into play. PLI should help you cover legal defense costs and eventual settlement.
Missed Deadlines and Work Mistakes
A simple mistake or just missing a deadline can cause a major setback for some of your clients. Even with little inconvenience, they could have already lost a chunk of their money or profit. So, it's beyond possible for them to hold you accountable for these instances.
Good thing PLI should assist you in paying for legal costs and giving you additional protection when a client files complaints.
Above are the instances that PLI helps you with. But there are many other complaints you might face that PLI does not cover already. PLI doesn't cover damages to business property, discrimination lawsuits, and customer injuries.
If you're interested in your PLI policy, don't hesitate to contact us at Black and Associates Insurance.
At Black And Associates Insurance, Inc., we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!
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