Professional liability insurance, sometimes called professional indemnity coverage but more frequently referred to as professional liability insurance or claims reimbursement insurance in the United States, is basically a type of insurance that helps protect against professional liability lawsuits. It has been designed to help employers and other employees who are liable for damages caused by their own negligence or fraud.
What's important to remember about any professional liability policy is that they are not intended to cover every possible mishap that could occur at your place of work or at the place of another client. These types of policies only provide protection against acts or negligence of your employees and contractors.
There are three basic types of this type of professional liability policy in the United States. The first is known as general liability insurance, which provides you with coverage for claims that could be filed against you. This type of insurance is most common in the United States but is commonly referred to as general liability insurance because it covers a wide range of potential legal issues.
Special liability insurance is used more in cases of product liability, medical malpractice and even construction accidents. Special liability insurance coverage is also referred to as specialty liability insurance because it covers specific areas of law. For example, if you are an attorney who specializes in tort law, you can include this type of insurance in your business insurance policy. Your insurance policy should contain specific limits and restrictions on the liability that you can be held accountable for. This would include a clause that states that if you are found to be responsible for malpractice or damages brought against you by another person or company, you are not liable for all of those claims.
As far as the amount of professional liability insurance that you are required to purchase is concerned, you will need to know the exact scope of coverage that is included in your business policy. Each state will have its own requirements when it comes to liability coverage. Be sure that the amount of coverage that is required of you in your state is in line with the legal requirements that are present in your particular state. Remember that these requirements change periodically and are subject to change based on the type of insurance that is being purchased. As a rule of thumb, you will probably want to make sure that you do not exceed the amount of coverage that is required by your state.
Another thing that you will want to consider when purchasing liability coverage is whether or not your coverage includes coverage for any medical malpractice suits that may be filed against you. These types of suits are usually very expensive, so you may want to include this coverage in your coverage in order to avoid paying out money on legal fees.