Professionals are expected to apply their skills and knowledge correctly when working on projects, and they’re sometimes held financially responsible if they fail to do so. Professional liability insurance policies help shield Massachusetts professionals from certain liability claims and lawsuits they might face after making a mistake in their work.
Professional liability insurance is a specialized form of commercial insurance that’s tailored to meet the unique liability risk mitigation needs that professionals have. Like other types of liability insurance, professional liability normally covers both legal costs and settlement fees (up to a policy’s limits) if a professional has a covered claim.
The vast majority of professionals in Massachusetts ought to consider carrying a professional liability policy, for anyone could potentially make a costly mistake in their work. Some specific types of professionals who might need a policy from an insurer include:
In some cases, people who work in trades may also want professional liability protection. Electricians, plumbers, carpenters, landscapers and others might all want coverage if they offer advice to customers, for they might be held liable if any advice that’s given proves to be wrong.
While the various professionals mentioned above may all need a professional liability policy, they hardly need the same exact coverages. The risks a doctor is exposed to are likely quite different from what a real estate agent faces, and both of those are probably unique from other professional fields. Even within a single field, professionals sometimes have vastly different risk exposures and need different protections.
In order to meet the diverse risks mitigation needs that different professionals have, insurers typically offer a variety of professional liability policies. Some of the more common types of policies include:
An insurance agent who specializes in professional liability policies can help professionals determine what type of policy is most suitable for their type of work.
Many professionals who are paid employees of an organization receive professional liability coverage through their employer. They can ask whether the company carries a policy that covers all employees and then, review any provided policy with an insurance agent to see how much protection is afforded.
Professionals who work for organizations on an independent contractor arrangement might be covered by an organization’s insurance policy, but this is far from a given. These professionals should speak with an agent about the particulars of their situation and the best way to obtain appropriate protection. Sometimes it’s possible to add a professional as an additional insured, but other times professionals need to purchase their own coverage.
For help procuring professional liability insurance for yourself and/or others in your organization, contact the independent insurance agents of Charles River Insurance. Our agents have worked with many professionals in Massachusetts, and we’re ready to assist you with evaluating coverage needs and finding a policy.