How does professional negligence insurance work?

Some people are exposed to the risk of being sued for malpractice or for errors and omissions because of their failure to perform their professional duties properly. Healthcare professionals, engineers, consultants, real estate brokers, stock brokers, insurance agents, architects, lawyers are among the occupations most prone to being found guilty of negligence.

The good news is that there are a few types of insurance policies that are designed specifically for the protection of professionals.

Types of Professional Negligence Insurance

Although we cannot speak of uniform professional liability policies, there are two types of professional negligence insurance that are more common than others.

Physicians, Surgeons and Dentists Professional Liability Coverage

• This policy type is designed to protect healthcare professionals against negligence claims of other people who happen to have suffered injuries due to a medical incident caused by the insured.
• Physicians liability insurance provides significant coverage: not only for unintentional medical malpractice, but also in cases when the insured has knowingly done something to a patient, but it has turned out to be the wrong diagnosis.
• Doctors and surgeons can buy two types of coverage: Coverage A provides protection to the medical professional for their negligent acts while performing their professional duties. Coverage B protects doctors and surgeons against group liability. It applies in situations when physicians work in a group, such as during a surgical operation.
• Professional negligence insurance only covers liability that has occurred while the insured has performed their professional duties.

Errors and Omissions Insurance

This type of negligence insurance coverage provides protection against any harm caused to a third party by errors and omissions of the insured. Errors and omissions insurance is designed for professionals who have a legal duty of care for the safety of others, such as engineers and architects, and those whose advice people rely on for their finances - such as insurance agents, real estate brokers, consultants, attorneys.

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