If a dissatisfied customer sues your business over an error or mistake, you committed you could lose your savings, business, and home in the suit. That is why you need malpractice insurance if you provide expert services directly to your customers. This type of insurance is also called errors and omission insurance, and it covers a wide variety of expert services that involve emotional, physical, and financial risks to the customer.
Are you looking for an inclusive malpractice insurance cover? Visit an independent insurance agent who will analyze your unique risks and find uneven coverage in your current cover.
Save on Malpractice Insurance
Call (866) 703-0853
Malpractice Lawsuit Facts
- 1 out of 7 insurance agents has faced a malpractice lawsuit at least once in their career
- Realtors can be sued for missed deadlines and exaggerated features
- 80% of medical misconduct claims involve severe injury and death
- A dentist can be indicted for unintentionally hurting a patient or not updating a patient’s medical chart
- Some accountants have been indicted for little errors, or apparent errors on annual returns, causing the Internal Revenue Service to find customers
What Is Malpractice Insurance?
This is a form of professional liability insurance that protects you from suits insisting you committed an error in your professional services. These mistakes may include unintentional misinterpretation, incorrect information, bad advice, and accidental injury.
If your customer suffers emotional, physical, or financial harm resulting from an error or omission you committed during service delivery, that customer can sue you for malpractice. According to the policy’s limit of coverage, malpractice insurance will cover the court fees, legal defense, and settlement costs.
Who Needs Malpractice Insurance?
The following businesses usually require malpractice insurance:
- Law firms and attorneys
- Advertising companies
- Engineers and engineering companies
- Teachers in the private sector
- Marketing companies
- Healthcare facilities
- Printing companies
- Hair salons and barbershops
- Website developer
- Consulting firms
- Cultural organizations such as art galleries and museums
- Veterinary offices
Won’t My Company’s Liability Cover Protect Me?
If you provide your services in a large company, your company most likely has a professional liability cover, but this does not mean it will protect you. While there is limited liability cover for you in your employer’s policy, many service experts are usually shocked when the employer goes missing during a lawsuit.
Some employers may pass the company’s fault to you personally, to protect their money and reputation. Regardless of this, you require malpractice insurance to protect your career and assets.
On top of financial security, errors and omission insurance will give you:
- Freedom – In the past, you could work for one company for your entire career. Today things have changed, and the job market has rapidly expanded; hence service experts are needed worldwide. If you depend on your company’s policy, you may end up missing an opening somewhere else.
Peace of mind – When you have your personal coverage, you will know your policy’s coverage and what is not covered. If you depend on your company’s coverage, your employer may hold on to information regarding exclusions and coverage amounts.
What Is Covered by Malpractice Insurance?
Errors and omissions insurance provides coverage for the following:
- Undelivered services: If your company leaves a job incomplete, it may interfere with your customer’s business arrangements. When you fail to deliver a service you promised, the customer could sue you, mainly if it negatively affected their deadlines.
- Work Mistakes and Oversights: Surprisingly, the slightest professional mistake or oversight could end up making your customer lose money. When the customer tries to recover their losses by suing you over mistakes, omissions, or errors, malpractice insurance will cover the legal fees.
- Missed deadlines: If your company fails to meet a deadline, it will interrupt your customer’s business arrangements and end up in lost income. When the customer indicts you over the late work, malpractice insurance will cover the suit’s expenses.
- Accusations of negligence: If your company does not meet the minimum market standard while working with a customer, you may be sued for negligence. An unsatisfied customer may still sue for negligence even if there is nothing wrong with your service delivery; hence you must have malpractice insurance.
Save on Malpractice Insurance
Call (866) 703-0853
Types of Malpractice Insurance
It would help if you differentiated between the following types of malpractice insurance:
- Occurrence coverage – This policy provides cover for claims during the coverage period regardless of the time the claim was reported. For instance, if you had a malpractice policy that was operational from February 2010 to November 2016. After November 2016, you don’t renew it. In July 2018, you were sued for malpractice for an incident that took place in 2015. Even though the insurance cover is over, you will still be covered.
- Claims made coverage – With this policy, allegations of malpractice are covered solely if presented while the cover is still active. For example, if a claim were presented after not extending in 2015, it will not be insured despite it happening when the policy was active.
- Modified occurrence coverage – This type of malpractice insurance integrates features of occurrence and claims policies so that you can have unlimited coverage.
Malpractice Insurance Cost
Malpractice insurance costs vary from one business to another. Regardless of the price, when you look at your business’s cost of mistakes, paying insurance premiums is totally worth it. The following factors influence the cost of malpractice insurance:
- Business risk – If your business operates in a high-risk industry, you will likely pay a higher premium.
- Claims history – You will usually pay more for malpractice insurance coverage if you have a history of claims made against you.
- Location – Insurance rates will fluctuate depending on where your business is located. If your business is located in a busy city, you will most likely pay high insurance rates.
- Coverage limits – The higher the coverage limits of your policy, the higher premiums you will pay.
Selecting the Right Malpractice Insurance for You
Among the most effective ways of purchasing malpractice insurance is by visiting an independent insurance agent. Working with an insurance agent will ensure you get the right malpractice insurance coverage that meets your unique needs.
For comprehensive and personalized coverage, contact an insurance agent today.