The two main types of liability insurance for professionals are General Liability insurance and Professional Liability insurance. Both coverages are important to properly protect a professional organization from financial loss.

Professional Liability insurance is designed to provide coverage to professionals for claims arising out of their professional activities or services to clients. Professional liability insurance is made up of many segments, and is also called "errors and omissions", "E&O", or "malpractice" insurance.

Coverage is typically provided by stand-alone professional liability policies and includes coverage for the defense costs associated with a claim.

In selecting and pricing professional risks, underwriters look at a variety of factors. These include the obvious ones, such as what does the professional do and who are the clients. Other factors include location, size, education, loss experience and operating characteristics.

Because of these variables, professional liability policies come in a wide range of types and are offered by a wide range of insurers. Often, the best price, coverage and service option may be provided by a smaller specialty insurer rather than a well-known multi-lines insurer. Because of the specialty nature of the business, professional liability insurance is traditionally considered to be part of the specialty lines insurance market. In many cases, coverage is provided in the surplus lines insurance market rather than the admitted market.

Professional liability policies typically provide coverage for the cost of losses associated with situations involving professional liability. These policies also include defense costs -- which can be quite substantial even if liability is not found. Policies typically do not provide coverage for non-financial losses or for intentional or dishonest acts. Professional liability policies are typically written on a claims-made basis.

General Liability insurance will protect an organization in the event the insured causes bodily injury or property damage to others and becomes legally obligated to pay damages. Liability for Bodily Injury can occur when a physical injury to a person is caused by third party. Liability for Property Damage can occur when a third party causes direct or indirect damage (such as loss of use of property) to another person's property.

General liability insurance is standardized and relatively easy to obtain. It is often provided in a package policy with other coverages, sometimes called a business office package policy. Most general liability policies issued to professional organizations contain exclusions for professional liability claims.

Acadia Specialty provides professional lines and other insurance coverages for a wide range of organizations on a national basis. Give us a call or contact us to discuss your specific situation and specialty lines insurance needs. The result will be sound professional advice, and competitively priced, customized insurance solutions.

Home Page | Specialty Insureds | About Us | Lines Of Insurance | Contact Us | Return to Top of Page