Professional Liability Insurance
Professional liability insurance (PLI) is a policy for professionals facing legal liability issues. Individual professionals and businesses risk making mistakes when providing professional services or advice. PLI helps cover the legal costs associated with a lawsuit so there’s no need to pay huge sums of money out of pocket.
Some people won’t work with a certain professional unless they have proof of PLI. Examples include healthcare providers, attorneys, architects, engineers, accountants, software developers, advisors, and brokers. People in these professions are at risk of causing the most harm to their clients in the event of bad advice or service.
Professional liability insurance actually includes several types of policies. Some of the most well-known include medical or legal malpractice. In order to receive assistance, the professional or business must have an active policy when the claim is made. That’s because PLI is a claims-made policy, which means it goes into effect when a claim is made – no matter when the action occurred.
When purchasing a PLI policy, there are several things to consider. Most notably, you’ll want to have premiums and deductibles that you can afford. Also, note what the policy covers and the steps to take when a claim is filed against you.