Home » Finance » What Professionals Require Liability Insurance

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The purpose of buying liability insurance is to transfer the risk of a legal judgment or settlement from the individual to a stronger and more financially capable insurance company. Liability can be created by either acting in a negligent manner that causes damage to another party or it can be created by failing to act as would be normally be expected under a given set of circumstances.

If you drive a car, you must have a state-mandated minimum amount of liability insurance to protect other individuals in the event of an accident that was your fault. Liability insurance is part of most comprehensive homeowner’s insurance policies. Most people are quite familiar with the above-mentioned types of liability policies but may not be aware of another important type of coverage used widely by professionals.

Professional liability insurance provides coverage for individuals that perform professional services. There are a number of different industries where giving the wrong advice or making a mistake is very serious. While no one is going to sue a McDonald’s employee for forgetting to put the secret sauce on a Big Mac, they may very well sue a surgeon for bungling a simple operation.

Doctors are a classic example of a specific group that requires medical professional liability insurance. The risks of practicing medicine without this type of insurance are just too great. Certain specialties such as obstetrics and surgery are always susceptible to lawsuits filed by injured patients.

Attorneys, accountants and even stock brokers may need to purchase professional liability insurance to help transfer the risk of liability claims. An attorney might give bad legal advice or fail to file the proper paperwork on time that results in damage to their client. An accountant could create liability by acting outside the bounds of standard accounting practices while preparing a corporation’s annual report. Stock brokers have been sued in the past for churning accounts and putting clients in completely inappropriate investments.

While there is a certain amount of protection available through a general business liability policy, it is not always adequate to cover an individual professional’s personal liability risk. Policies can be expensive depending upon the degree of risk, but working without insurance coverage can be much more expensive.

25 Comments

  1. Ronnie Inanoa says:

    This was helpful. I had very little knowledge about liability insurance and got to know a good deal from this post.
    Thanks for sharing.

    -Ronnie

  2. Alexarie says:

    Actually, there are a lot of things we have to know more about insurance before we decide on some things about it…Professionals can really help other than attorneys…

  3. Jazmine says:

    These expenses can be beyond the reach of many consumers, which is one reason automobile liability insurance is required by most states for those who wish to operate a vehicle on public roads and highways..

  4. I did not know that there are so many types of liability insurances. I agree that if you own and drive a car, you must at least have a liability insurance that would help you cover expenses should you become involved in a car accident that you have caused. Many of us think that we do not need this kind of insurance, but of course, we really have no idea if we are going to get involved in a car accident one way or the other.

  5. Karyn18 says:

    Getting an insurance is a wise move. This will assure your future. And will help you lessen your expenses in case of accident (for car accident) or it can help you covered any legal liabilities.

  6. Born27 says:

    Liability insurance is no doubt beneficial. We can’t predict life, and with this, it could help us and even our family. Good thing you post such useful information like this.

  7. Divinne Grace says:

    Thanks for your information about liability insurance and I think we need to be more familiar with it…

  8. Carmen says:

    That was an helpful one. This liability insurance is perfect, but I think I could study more about it. I’ll pin this post.

  9. Heidi19 says:

    It’s good to get an insurance, not just for your liabilities but also for our future. Having a life insurance can assure not only ourselves but our family too!

  10. Good thing you post such useful information like this.. This liability insurance is perfect, It could help us and even our family. I think we need to be more familiar with it…

  11. Liz says:

    That is a wonderful blog. Thanks for sharing the liability of insurance. This blog could be an helpful one.

  12. lariane says:

    It was an informative post. Thanks for sharing this with us. Looking forward for the next post.

  13. Claudette says:

    You better have liability insurance. When someone slips and falls on spilled food such as ice cream guess who is going to get sued? Everyone.

  14. Margareth says:

    Thanks for sharing with us a kind of ideas about liability of insurance, I do love to share also this one to my friends…

  15. Krizel says:

    Liability insurance is one of the most popular with professionals because it costs much less than other types of insurances. Liability insurance can protect any individuals from being held as responsible to any other party’s damages. So I believe that this kind of insurance is a must have one for professionals.

  16. This is very interesting blog and for sure, we will be happy to read it. Thanks that you shared. I love this link up.. Good thing you post such valuable information like this.
    So thanks for hosting!

  17. Kamilla Lecher says:

    A huge for me to understand the topic regarding finance.

  18. Audrey says:

    I do agree that liability of insurance has a huge part in providing positive results for the future, thanks for a kind of information…

  19. Carol says:

    I’m not very familiar with this matter so it a big help that you post this in your blog.

  20. This is very interesting blog and for sure, we will be happy to read it. Thanks that you shared. I love this link up.. Good thing you post such valuable information like this.
    So thanks for hosting!

  21. Kathrryn says:

    Insurance is actually one of the things that we have to know more about because in return and in the future, we it can help us in times of need..

  22. Danyelle Franciosa says:

    Insurance is really important in looking forward to your future and every individual must avail it. This is such a great information for me and I learn so many things. Thanks!

  23. Sam says:

    I didn’t had full knowledge about liability insurance and got to know a good deal from this post, I did know that there are many types of liability insurances but have no idea about it, this will assure our future and also will help to lessen our expenses, I think this kind of insurance is a must have one for professionals, thanks for sharing this wonderful blog.

  24. Sandra92 says:

    Thanks for sharing with us this indeed information, insurance is very important for a kind of security at the future…

  25. It is really good to know about the liability insurance and I have an idea to purchase professional liability insurance. It will help in the future and I got a better understanding through this post.

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