Why is Professional Liability Insurance Necessary for Professionals?

PLIeasycoverProfessional Liability Insurance is a type of insurance intended for professionals to protect themselves from unnecessary lawsuits or claims made by clients who are not pleased with the services they have gotten.  If your profession is one that provides professional services to people, then it is vital that you have professional liability insurance as this will serve as your financial protection should you get sued.  Individuals who need professional liability insurance are:

  • Medical Professionals – doctors, physicians, nurses, dentists, physical therapists, occupational therapists, nutritionists, healthcare providers, veterinarians.
  • Construction Industry – engineers, architects, designers, surveyors, real estate agents, general contractors, plumbers, electricians.
  • Accounting and Financial Services – accountants, bookkeepers, tax preparers, accounting firms and agents.
  • Others – IT professionals, lawyers, advertising agents, employment agents, brokers, insurance agents.

There are actually 3 main reasons why an individual should get professional liability insurance:

  1. You provide expert advice or consultations. A client can make a claim if the advice you have provided turns out to be a mistake on your part.
  2. You provide professional services. If you make a mistake on the designs, plans, calculations, or procedure, that is damaging to the client or patient.
  3. You handle sensitive information. Revealing sensitive information or the infringement of client’s legal rights can get you sued.

If you are working as a professional, it is in your best interest to have the protection of professional liability insurance so that in case you get sued, whether this is really a mistake on your part or simply a dissatisfied client wanting to make some money out of you, having the protection of a professional liability insurance canada is a sure way of protecting your financial interest.  Keep in mind that these days you can get sued for the slightest mistake on your part.  Not having the protection of an insurance means you will have to should all the cost of the lawsuit, including the settlement should you lose the case.

The truth is that these days, even if a claim or lawsuit case does not really have any merit at all, there is a possibility of losing the case, especially if the plaintiff’s lawyer is very charismatic and can turn the side of the case in their favor.  To be caught in such a lawsuit without the protection of professional liability insurance can be very costly on your part.  This is the reason why it is best to be always protected for those undesirable situations.
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While some professionals may claim that if they do their absolute best, they will not get sued.  This is no longer true these days because you can get sued for nearly anything.  If you value your professional career, even if the cost of professional liability insurance may seem like an unwanted cost on your part, it is vital that you protect yourself with this so that in an event of a lawsuit, you have the financial backing of your insurance company.  In fact, if you do not have a lawyer, your insurance company can even provide one for you – essentially a win-win situation on your part.