Professional liability coverage is a type of insurance offered to people practice a profession; appraisers, property managers, architects, attorneys, residential brokers, title escrow agents, and consultants are just a few of the people who depend on having solid professional liability coverage. Though this is one of the most frequently-purchased forms of professional insurance, so understanding your options is very important.
Protection tailored to your specific concerns
The way your policy functions will depend on what type of liability you have purchased.
- Claims-only coverage is a very common form of coverage. Its action is limited only to the period of time in which the policy is in effect. If any professional liability claims are made against you during the period of time the policy covers then it will help protect you. This policy will need to be renewed on a regular basis to keep it active.
- Some claims-only policies allow you to purchase retroactive protection. This type of coverage will protect you if a claim is made after the policy goes into effect regarding an incident that took place before you purchased the policy. If you are concerned about these types of professional liability claims then you will need to read the details of your policy carefully.
Insurance options that protect the work you do
Without any form of professional liability coverage you are vulnerable to claims made against you. Your insurance will protect you as long as you engage in your profession and can even protect you for the span of any applicable statutes of limitation so make sure that you get the right policy for the work you do.