Professional Liability Insurance in Massachusetts
What is professional liability insurance?
Clients expect professionals to apply their knowledge and expertise accurately when hired. Significant mistakes could lead to liability lawsuits targeting the professional. Professional liability insurance assists professionals in Massachusetts by providing protection against such risks.
Professional liability insurance delivers specialized commercial coverage tailored for individuals working in professional roles. Policies usually defend against lawsuits stemming from errors in work.
Who in Massachusetts should consider obtaining professional liability coverage?
Massachusetts professionals with specialized training may need professional liability coverage. Most policies are purchased by white-collar workers, some of whom might be required to have a policy.
Examples of professionals who would likely benefit from professional liability protection include:
- Physicians and other healthcare providers
- Attorneys and others in the legal field
- Certified public accountants, accountants and bookkeepers
- Financial advisors and financial planners
- Real estate agents and brokers
- Architects and engineers
- General contractors and skilled tradespeople
While many of these professionals may want or need professional liability coverage, not everyone should have the same policy. Insurance companies offer a range of professional liability policies catering to various fields. An insurance agent with expertise in this coverage can help Massachusetts professionals find a policy specifically tailored for their line of work.
Do contractors require professional liability coverage?
Contractors might choose to purchase professional liability policies to safeguard themselves when providing advice to customers. A contractor could be held accountable if their poor advice ultimately resulted in a cost to the customer. Professional liability, particularly E&O coverage, may offer protection in such cases.
What are the various types of professional liability policies?
Numerous professional liability policies are classified as either malpractice coverage or errors and omissions (E&O) coverage. The diverse malpractice and E&O policies that insurers provide include:
- Medical Malpractice Coverage
- Legal Malpractice Coverage
- E&O Coverage
- D&O Coverage
(D&O is short for directors and officers coverage, which is primarily used to protect leaders of businesses and nonprofits.)
Do employers typically provide professional liability coverage to professionals?
Employers often carry professional liability policies that extend coverage to their employees. However, professionals should consider a few factors before solely relying on an employer’s policy.
Firstly, an employer’s policy usually covers only employees. Independent contractors and subcontractors are less frequently included in an employer’s coverage.
Secondly, an employer’s policy generally applies when performing work for the employer. The coverage likely won’t extend to side gigs or charitable work, although other businesses and nonprofits might have their policies that apply in those situations.
Before depending on employer-provided coverage, professionals should discuss their situation and employer’s policy with an experienced insurance agent. An agent can explain in more detail the different scenarios where an employer’s coverage may or may not offer protection.
What factors influence the premiums for professional liability policies?
Premiums for professional liability policies can vary greatly. Factors such as the field of work, level of work (e.g., nurse vs. doctor), number of people covered, and recent claims history are just a few details insurance companies typically consider. Rates can also differ by state and numerous other details.
The most straightforward way to determine the cost of professional liability in a specific situation is by comparing customized quotes from different insurance companies. An independent insurance agent, unaffiliated with any particular insurer, can assist in obtaining custom quotes quickly.
How can Massachusetts professionals acquire professional liability insurance?
For assistance in finding professional liability insurance, contact the independent insurance agents at PIKE Insurance. Our agents have worked with Massachusetts professionals across different fields, and we’ll work closely with you to discover a tailored policy for your work. With our aid, you can be confident that you’re well protected.
