PLI protects professionals like lawyers, physicians, and accountants against negligence initiated by their clients. Since general liability insurance policies don’t provide any kind of protection against claims arising from negligence or mistakes committed by professionals with expertise in specific areas therefore they require professional liability insurance Texas.

Professional liability insurance: Working!

The professional liability insurance names can be different depending on the business type such as medical malpractices, errors or omissions by real estate agents or any other. PLI is a specialty coverage that is not provided under policies like homeowner endorsements, in-home business policies, and so on.

Generally, professional liability insurance policies are claims-made which means the coverage is good only for claims and events when the policy is in active state. In case, if you let your policy expire and a client files a claim against you after its expiration then you will not get any benefit out of the policy.

What is included in professional liability insurance?

Professionals like consultants, engineers, brokers, architects, accountants, real estate agents, brokers, insurance agents, counselors, accountants, doctors, health, advisors and financial advisors require PLI. The coverage provided in PLI doesn’t include criminal prosecution nor legal liability under civil law.

Various examples of liabilities that are not covered under PLI are:

·         Bodily injury

·         Employee injuries

·         Employee discrimination lawsuit

·         Customer injuries

·         Customer damages

·         Business property damage

Various examples covered by PLI are:

·         Undelivered services

·         Any kind of errors, omissions, and mistakes provided in the services

·         Failure to meet the quality standards

·         Missed deadlines

·         Defense costs

·         Breach of contract terms

What is the cost of professional liability insurance?

The amount that you have to pay for this type of insurance policy will be dependent on your profession type. This is because of the risk associated in the profession. Some additional factors that vary the costs are a geographic area you practice in, the experience of your business, the number of claims that you made in the past and the number of employees you have in your business. These are the factors that decide the cost of the PLI policy.

Just like in other policies, deductibles, and coverage limits also influence the amount that you have to pay.