SPECIALTY INSURANCE SOLUTIONS

PROFESSIONAL LIABILITY

WHAT IS IT?

Professional Liability Insurance protects organizations and individuals from claims arising from the delivery of your professional services. It protects against liability arising from accusations of negligence or the failure to deliver the services expected of them. If a client of yours felt that you may have breached your professional duties to them, they might demand financial compensation for having failed in your responsibilities to them. The insurance itself often takes on different names depending on the professional services it represents. In medicine, it is called Malpractice Insurance, for media organizations, it is called Media Liability, whereas other industries refer to it as Errors & Omissions (E&O).

WHY TRISURA?

Our suite of Professional Liability Insurance products provides us with the flexibility to tailor the coverage to fit each specific class of professional that we insure. When a suit is launched, the professional needs to look to an insurance professional to provide a defence against the allegations made by the client. Trisura provides that insurance expertise and handles the claim professionally and quickly so that the professional can focus on their area of expertise.

COVERAGES

FIVE THINGS YOU SHOULD KNOW ABOUT PROFESSIONAL LIABILITY

1. The definition of professional services is changing… for the worse.

The courts have been steadily expanding the notion of professional responsibility to new professions, and broadening the duty and standard of care a professional is expected to deliver.

That means that the old stalwart malpractice claims against doctors and surgeons are now side-by-side with suits against meeting planners, auctioneers, bookkeepers, translators, and claims adjusters.

2. The judgment isn’t your clients’ biggest worry.

Being sued for negligence is expensive. If your client needs to defend themself (even if the claims against them are without merit), tell them to keep a chequebook handy, as legal fees, court costs, and professional witnesses don’t come cheap.

If a suit is found in favour of the plaintiff, your client’s reputation and that of their company can be irreparably hurt.

Having Professional Liability Insurance means your client will have their own expert to guide them through the process and help them make good decisions while the insurer pays the legal bills.

3. The judgment should worry them too.

Having expert claims professionals and lawyers guiding your client through the process can save them a lot of money and stress, but there is still the possibility of a large settlement or judgment against them.

In fact, court awarded judgments has more than doubled in size since 2000.

4. It’s not just their services that they need to be worried about.

Professional liability suits can also land in your client’s lap when their employees mess up, or when a contractor or supplier doesn’t uphold their promise.

In these cases, your client will carry the burden of having to defend themselves against someone else’s error or omission.

5. A good contract between your client and their customers won’t save them.

Although having a strong contract outlining the scope of services being provided (and limitation provisions) is a great risk management tool, they may not hold up in the courts.

The more negligent one is, the less likely a limitation of liability clause will protect you.