Liability insurance is something a professional never wants to use but should always have. Also known as professional indemnity insurance or errors and omissions insurance, liability insurance is a shield against lawsuits when a claim states that the professional was negligent or otherwise made a serious mistake in the provision of services. Liability insurance can also be applied to the cost of a defense. Here’s a list of professions that require professional liability insurance.
Medical malpractice is the best-known type of liability insurance. If a medical professional is negligent—whether by act or omission of services—and causes injury or death, they may be subject to a lawsuit. Malpractice insurance is sometimes covered by the professional’s employer, but many physicians have personal policies as well.
Liability insurance for attorneys covers lawsuits alleging that the attorney or their firm made mistakes or failed to provide proper representation. Failure to submit paperwork or appear in court, ignorance of the law, conflicts of interest, and gross incompetence are all allegations that can provoke a client to file a lawsuit.
Contractors require liability insurance because if there’s a possibility that anything can go wrong during a project, it likely will. Failure to follow plans, meet deadlines, and complete projects can lead to lawsuits, not to mention the possibility of property damage, as well as worker injury or death. Depending on the policies, contractor liability insurance can cover the contractor as well as any third parties working for them.
Including teachers on a list of professions that require professional liability insurance? Yes, even teachers, principals, and other educators need coverage. Allegations of educational malpractice can include causing injury to a student or a student experiencing injury under the educator’s supervision, engaging in corporal punishment, violating students’ civil rights, hiring unqualified personnel, failing to promote or credit students, and utilizing improper methods of instruction.
When dealing with substantial amounts of money and—by extension—people’s life savings and futures, it’s no wonder that stockbrokers require liability insurance. Bad advice on investments can certainly warrant lawsuits alleging negligence on the stockbroker’s part. Allegations of fraud or mismanagement can also lead to the costs of mounting a defense in court, at the very least.