Professional Liability Insurance

After Paying Your Dues, Don’t Forget to Pay for Professional Liability Insurance Too

There’s no question that you’ve paid your dues to get to where you are today. All the years of schooling, then additional coursework in your field of study to obtain the certifications and designations to which you are entitled as a professional provider (not to mention the hefty student loans that took years to pay off); internships and other training, working with mentors; carving out time in your busy schedule for continuing education as necessary to maintain currency in your industry; until finally–you got your big break. After all you’ve gone through to carve out your own niche in the business world, it stands to reason that you will want to protect everything you’ve worked for from harm–and that is the driving reason why you should realize that the professional liability insurance cost of a premium is insignificant compared to the expenses you could incur should something go wrong.

What the policy covers

This coverage, also known as errors and omissions insurance, gets its name when it applies to businesses and individuals that offer professional advice or services–think lawyers, doctors, accountants, architects, designers, and such. The policy covers the insured in the event you are found liable in claims of negligence, errors, or harm that causes financial loss or other damages to others. The coverage protects you whether you are at fault or not–a major plus considering lawsuits are not only time consuming but can be extremely expensive. In some instances, such as in the legal and medical professions, the coverage is required by law due to the greater potential for harm (and lawsuits as well).

Weighing risks against coverage costs shows value of coverage

Don’t let the lack of professional liability insurance cost you your peace of mind, a substantial amount of your assets, or even your entire business. With all of this at stake, it is clear that the need to contact a professional insurance agent about this important coverage cannot be stressed enough. Your agent can offer information about your industry’s contractual requirements for the policy, if applicable; discuss cost feasibility; and tell you more about the potential for claims. Call an agent today to learn more.

Princeton New Jersey Business Liability Insurance

Liability insurance, or Commercial General Business Liability coverage, protects a company’s assets and pays for medical costs incurred if someone ends up being injured on your property, or for property damages or injuries caused by you or your employees.

Princeton, New Jersey business liability insurance also covers the cost of your legal defense and any settlement or award in the event you are found liable in a lawsuit. Typically this will include compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages.

Does your business need liability insurance?

The obvious answer is “yes” because we live in such a litigious society. Plus, this is a wise investment that doesn’t cost much, with annual premiums ranging from around $750 to $2,000, depending on your particular line of business and coverage needs. And it could be the difference between losing the thousands, if not millions, of dollars likely needed to fight your case in a courtroom.

General liability insurance can be purchased on its own, but it can also be included as part of a Business Owner’s Policy (BOP) which bundles liability and property insurance into one policy. If you have a BOP, check it out to see what your liability coverage limit is, and if it is low, you may benefit by purchasing additional coverage through a separate policy.

Determining your coverage needs

Your business location is a factor that comes into play when deciding the amount of coverage you need. It also depends on the type of business you are in and any perceived risks associated with it. For example, a building contractor will often need more coverage than a web designer or consultant. Talking to a licensed insurance broker for advice on this matter is a sensible solution, so don’t just rush out and buy a policy.

How Princeton New Jersey business liability insurance works

Your general liability policy will outline the maximum amount the insurance company will pay against a liability claim. So, if your small business gets sued for $300,000 for medical costs associated with an injury caused at your place of business, and there is an additional $100,000 in legal fees, and your coverage maxes out at $300,000, then you’re responsible for paying the difference of $100,000. In this case, purchasing an umbrella insurance policy that increases your coverage limits will resolve issues of this nature. Speak to a reputable agent with any questions or concerns.


Steps to Prevent Nursing Home Professional Liability

By nature of caring for the elderly, a portion of society that is more prone to accidents resulting in injury, Long Term care (LTC) facilities must have caring, attentive physicians working at their facilities to reduce the potential for claims. Nursing home professional liability insurance will aid in defense of lawsuits, but prudent behavior and a sound risk management plan will be equally beneficial.

The recent escalation in nursing home litigation has, unfortunately, adversely affected the practice environment in the nursing home community. These facilities must take steps to assure relatives that loved ones left in their care will be properly treated, otherwise any fears or concerns will only be heightened when, and if, an incident occurs.

A well-trained staff can reduce accidents resulting in claims

Owners must take every precaution to ensure that they do not put physicians at risk, placing them in situations that could leave them vulnerable to litigation. Although a medical director may not even have knowledge of an incident which has occurred, he or she may be asked to give a deposition to ascertain that, had they known about the incident when it occurred (and had intervened at the time), the clinical outcome would likely have been more favorable to the resident. They should be doing everything in their power to reduce the likelihood of a threat to the quality of care for their frail, elderly attendees.

Effective risk management requires identifying litigation-prone areas and implementing preventive or corrective actions throughout a facility. The areas of concern common among most facilities are pressure ulcers, malnutrition and dehydration, and injurious falls. Other areas that should be addressed to reduce any possible concerns include adverse drug events, burns due to unsafe smoking practices, elopement, untreated and/or undiagnosed changes in a medical condition, and improper discharge of a resident.

The best defense against litigation, aside from nursing home professional liability coverage, is simply improving the quality of care. In order to reach this goal, owners of the nursing home, along with administrators and employees, must address existing issues, and attempt to improve overall care. This plan must include the presence and active participation of the attending physician and medical director, and be carried out in a way so that all team members feel a responsibility to help improve care within the facility.

Why You Need Medical Professional Liability Insurance

Medical professional liability insurance (also known as errors and omissions insurance), is a type of insurance coverage that is designed to protect a medical professional and their practice if a patient claims that they have made an error or omission in regard to their care. Whether the claim is proven to be true or false, errors and omissions insurance provides financial coverage for legal costs.


Why Is it Necessary?


Even if you are quite confident in your abilities as a medical professional, it is important to realize that everyone makes mistakes at some point. Sometimes mistakes are minor, but sometimes they are major enough to have a negative effect on a patient’s health. In those rare cases, medical professional liability insurance may save your practice from financial ruin because it will cover legal costs associated with errors and omissions claims brought against you. Without this coverage you would be responsible for paying the full cost of all legal fees out of your existing funds.


Protect Yourself and Your Practice


If you want to continue practicing medicine for as long as possible, make sure you have a good insurance policy that includes medical professional liability insurance. No medical professional should ever underestimate the importance of having this type of insurance coverage, even if they think they would never make a medical error or be accused of making one.


photo credit: WELS Christian Aid and Relief cc

Protect Your Practice With Custom Liability Insurance for Law Firms

You do not need a generic professional liability insurance plan. You need an insurance plan designed by professionals that understand the challenges law practices face today and tomorrow. Lawyers professional liability insurance is specifically designed for law firms with at least three attorneys. Choose the option that will be best for your practice in case things go wrong. Instead of hoping for perfection and good luck, take action.


Liability Insurance Designed for Attorneys


It is important to find a company that provides customized options for professional liability insurance. Instead of paying for some items you need and many items you do not, only pay for coverage that will help your practice succeed. Investing in lawyers professional liability insurance is a great start for patent attorneys, SEC compliance attorneys, real estate attorneys, and collection attorneys to help practices thrive. Additionally, you can be eligible for coverage with or without claims.


Benefits Go Beyond Basic Coverage and Competitive Rates


Some of the benefits of the program include:


  • SEC coverage
  • First dollar defense option
  • Competitive rates and terms
  • Up to $50 million in coverage
  • Innocent insured coverage


Get the Protection You Need to Succeed


Errors and omissions insurance options for attorneys can help your practice get the protection you need to thrive. Instead of waiting for something to go wrong, invest in the right insurance plan for your law practice today.


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Ways to Reduce Costs for Professional Liability Insurance for Consultants

Most carriers will consider three main areas when underwriting professional liability insurance for consultants; the firm’s past claim history, their systems and procedures, and their area of practice. Just what the amount of consideration given to each category often varies from one insurance company to another. In some instances, a carrier may change their focus depending on the firm’s overall claim experience. Professional liability insurance rates are determined by an actuarial study of the areas of practice and the claims stemming from their main workload.


How consultant’s professional liability coverage works


The majority of insurance companies insure consultants for their professional services and the performance of those services. It is up to the consultant to determine how confident they are in a given area of practice in order to meet the commitment of being their client’s advocate.


Knowing their own limitations is important to their success and survival. This can greatly reduce the amount of errors one may face during the course of doing business as a consultant. Strictly from an underwriting perspective, a carrier would prefer to see a consultant concentrating their efforts where they thoroughly know the business and procedures as opposed to looking at an application that has a broad range of areas with added risks.


There are alternatives available, such as associating on a case-by-case basis with a consultant who specializes in a certain area of practice, or using a referral fee system with other firms. Developing a network of firms that can share their level of expertise may be in a firm’s best interest. When a clients needs are served, all parties’ win, and firms are more profitable, particularly when insurance carriers are involved in fewer claims.


Risk management is one way to stem the tide of claims


As the professional liability insurance for consultants market continues to change, professionals are faced with new underwriting restrictions, policy limitations and carrier requirements. Therefore a few risk management practices and procedures are in order. By identifying certain procedures that could help minimize the threat of a legal malpractice action, a consultancy firm can be at a greater advantage for success. The first step is to implement practices that could lead to the avoidance of such actions.

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