5 Things You Must Know About Professional Liability Insurance


The idea of professional liability insurance might sound very daunting. But every person or business offering any kind of professional service should indulge in professional liability insurance. Before you take up this insurance, unfold some of the professional liability insurance coverage facts.

Professional liability insurance helps protect the interests of any individual or the business against every kind of third-party liability. When the third party sues any business for malpractice, negligence and injuries, the company will compensate the damage of the same while settling it down directly with the party. The liability insurance plan helps to cover the legal liabilities that arise against any individual or company due to personal injuries, bodily injuries, property damage or advertising injuries that happen to the third party. With the help of professional liability insurance coverage, the business can repay the costs associated with the loss of health.

Before any company or individual indulge in liability insurance, they must be aware of these five things.

The coverage of the liability insurance plan

Be aware of the coverage that professional liability insurance offers. For instance a, standard liability insurance covers:

  • Death of the third party
  • Permanent disabilities caused to the third party
  • Any kind of bodily injuries caused to the third party
  • Property damage was caused to the third party.

Apart from professional liability insurance coverage, there are other liability policies. One can select these policies according to their business operations and types. One should thoroughly read this article before selecting any kind of liability insurance coverage.

Things that are not covered under this plan

One should be aware of the exclusions of this insurance policy. The liability insurance policy does not cover the damages to the property of a vehicle. One should claim it within a year of the accident or the incident. However, the third parties should be obliged to the terms and conditions. The claim will be rejected or delayed if the third party fails to provide the documents or the required information.

Time to file the claim

Before filing the coverage, the third party should know the party and location. It should be claimed only if the liability occurred at the location of the business.

Benefits of the plan

There are various benefits that this plan offers. Under professional liability insurance coverage, if the business entity or any individual is found liable, the insurance company would pay the third party. The benefits include:

  • Providing the claims against bodily injuries
  • Offering medical payments
  • Providing the claims against advertising and personal injuries
  • Providing the medical expenses for the recovery or treatment of the third party
  • Third-party liability coverage is also included within the plan
  • Protection from any kind of dropped cases
  • Offering lawsuit protection
  • Providing employees coverage.

How the plan works

Professional liability insurance has 3 main parts. These are:

  • FIR

In the first stage, the third party needs to register a complaint about the accident at any nearest police station. It is one of the important documents that would initiate the whole process. The insurance company would verify the various details and processes that quickly initiate the process based on the FIR document.

  • Coverage

The limit on the coverage does not get fixed while one buys the policy. Especially during the ICU expansion, one might require to buy the insurance policy. The insurance company would make the required payment according to the given terms and conditions of the policy to the third party. One should do it in compliance with the court of law.

  • Documents submission

In this stage, the third party submits all the documents that the company specifies. The documents should include the original bills of expense and the original FIR.

The liability insurance plan offers the business and other individuals the needed protection. The insurance company would bear the expense. It will also help you out in any kind of loss caused due to the third party claim.

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