PROFESSIONAL LIABILITY INSURANCE VS. MALPRACTICE INSURANCE, WHAT ARE THE MAIN DIFFERENCES?
As a an attorney or title agent, you probably know that it’s in your
best interest to have adequate E&O insurance in place to protect you and
your business should a mistake happen that affects a client. When looking into
your insurance options or even in conversations with other professionals, you
may have run across these two terms: professional liability insurance and
malpractice insurance. Have you ever wondered if they are the same or just
which one is right for your firm or agency?
If you don’t know the actual meaning of these terms or what makes them
different, we are here to help. Let’s break down the basics of professional
liability insurance and malpractice insurance to help you understand the
differences and uses between these two forms of insurance.
WHAT IS PROFESSIONAL LIABILITY INSURANCE?
Professional liability insurance (PLI) is a type of insurance designed
to protect professionals such as lawyers and title agents in the event that a
client claims that they were financially harmed as a result of errors and
omissions made by the professional in the delivery of service.
A client could sue you if they feel the services they were promised were
not properly provided. It also provides protection if you haven’t made a
mistake, but a disgruntled client has filed a claim because their expectations
were not met or they were dissatisfied with your service. Most professional
liability insurance policies only provide coverage for financial or economic
losses suffered by clients, as opposed to property damage or bodily injury.
Common professional liability claims professionals face include:
Negligence
Breach of duty
Misrepresentation
Breach of contract
Misleading clients
Failure to deliver a promised service on time
Errors or omissions
Incomplete work
Undelivered services
Budget overruns
WHO NEEDS PROFESSIONAL LIABILITY INSURANCE?
While professional liability insurance is a type of business insurance,
not everyone may need it. This type of insurance coverage is a must-have for
firms and agencies that provide professional services to customers or clients.
This list includes, but is not limited to:
Attorneys
Title Agencies
Insurance brokers
Counselors
Consultants
Financial advisers
Engineers
Architects
Real estate agents
Accountants
Contractors
Technology professionals
Advertising agencies
Creative professionals, such as beauty technicians, interior designers,
photographers, graphic designers, and writers may want to consider professional
liability insurance as well.
Broadly speaking, PLI is designed for anyone who has special training or
knowledge in some professional activity. It’s for anyone who holds themselves
out to be an expert in certain areas.
WHAT IS MALPRACTICE INSURANCE?
Malpractice insurance is a specialized type of insurance that provides
coverage to healthcare professionals for liability claims filed by their
patients. Though there are some attorneys that carry malpractice insurance, the
best known for is medical malpractice insurance.
When working on a human body, there’ll always be a risk that someone
could get hurt. With the potential for errors being high in the healthcare
field, having this type of insurance is essential. In fact, carrying
malpractice insurance is required by law in most states.
Medical malpractice occurs when a doctor, healthcare professional, or
medical facility causes injury or death to a patient through a negligent act or
omission. The negligence might be the result of errors or omissions in
diagnosis, treatment, or aftercare.
Medical malpractice insurance provides protection against claims arising
from:
A breach of doctor-patient confidentiality
Failure to diagnose or misdiagnosis
Surgical errors
Unnecessary surgery
Medication errors
Anesthesia administration mistakes
Childbirth-related injuries
Failure to diagnose symptoms
Ignoring or misreading laboratory results
Premature discharge
Poor aftercare
Bodily injury
Delayed treatment
Along with other similar charges. Injury costs related to medical
malpractice can be extremely excessive. As such, a malpractice insurance policy
might prove critical.
WHO NEEDS MALPRACTICE INSURANCE?
Generally, any provider of healthcare services needs malpractice
insurance. This includes:
Physicians
Surgeons
Medical students and residents
Nurses and nurse practitioners
Advanced practitioners
Paramedics
Physical therapists
Optometrists
Dentists
Anesthesiologists
Psychologists
Allied staff
THE DIFFERENCE BETWEEN PROFESSIONAL LIABILITY INSURANCE AND MALPRACTICE INSURANCE
The difference between these forms of insurance is that professional
liability insurance covers damages for a wide range of professionals.
Conversely, malpractice insurance is specifically designed to protect
healthcare workers from the unique risks they face. For example, a surgeon
faces a much greater potential risk of causing injury to another person during
a complex procedure.
Professional liability insurance and medical malpractice insurance have
something in common: they cover legal defense expenses, as well as any
settlement or judgment.
GET A QUICK QUOTE FOR PROFESSIONAL LIABILITY INSURANCE
We are all human and sometimes we make mistakes. And even without
mistakes, all it takes is for one unsatisfied client filing a lawsuit to ruin
your business. At Attorneys First Insurance, we’re here to help you protect
your firm or agency in advance.
We offer competitive professional liability insurance policies
exclusively for title agents and lawyers. We understand your business’s unique
needs and are here to customize your coverage to meet those needs. If you’re
looking for the right coverage at the right price, contact us today get a quick
quote to find the best rate for your E&O insurance.
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