YOU ASK:
What is the definition of Professional Liability Insurance?
WE ANSWER:
Professional Liability Insurance provides professionals with protection in case they are faced with lawsuits due to their acts of error, negligence or omissions that resulted in the injury of their clients.
This kind of cover is also called an Errors & Omissions policy. For professionals, it is extremely important to be covered at all times.
Professional liability insurance may process claims based on claims made basis and on occurrence basis.
- For claims made basis, the insurance will pay when the claim is made at the time that the policy is in force.
- For occurrence basis, the insurance will pay regardless of when the claim is made (even after the policy has ceased being in force for years), as long as the incident occurred at the time the policy was in force.
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