The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim. Other forms of insurance cover employers, public and product liability. But various professional services and products can give rise to legal claims without causing any of the specific types of harm covered by such policies. Common claims that professional liability insurance covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. Examples:
- If a software product fails to perform properly, it may not cause physical, personal, or advertising damages, therefore the general liability policy would not be triggered; it may, however, directly cause financial losses which could potentially be attributed to the software developer’s misrepresentation of the product capabilities.
- If a custom-designed product fails without causing damage to person or property other than to the subject product itself, a product liability policy may cover consequential damages such as losses from business interruption, but will generally not cover the cost to redesign, repair or replace the failed product itself. Claims for these losses against the manufacturer may be covered by a professional liability policy.
Here is a list of a few occupations that we can write.
• Accountants • Architects and Engineers • Benefit Plan Administrators • Broadcasters
• Business Consultants • Claims Administrators • Computer Consultants
• Construction Managers/Builders/ Real Estate Developers • Credit Counselors
• Design Professionals • Employed Lawyers • Environmental Consultants • Financial Institutions
• Franchisers • Graphic Designers • Insurance Agents/Brokers • Internet Companies
• Investment Advisors/Consultants • IT Consultants • Lawyer’s Professional • Managed Care
• Med Mal • Media Liability • Misc. Professional Liability – All Industry Groups & Professions
• Mortgage Bankers & Brokers • Physicians Non-Standard Medical Malpractice • Printers
• Professional Firms • Public Officials • Public Relations Firms • Publishers
• Real Estate Agents/Brokers • Risk Management Consultants • Securities Brokers/Dealers
• Tax Preparers • Technology • Third Party Administrators • Title Insurance Companies/Agents