3 Professional Liability Insurance Coverage Myths

PictureLet’s be honest: Professional liability insurance coverage is often misunderstood, its importance underestimated. If you are a professional, then we cannot stress enough the importance of educating yourself on professional liability insurance coverage. To make this a little bit easier for you, EasyCover has compiled today a list of 3 common myths related to this particular insurance policy. We highly encourage that you read through this list before requesting your free Canadian professional liability insurance quote.

  1. Professional liability insurance coverage is the same as general liability insurance coverage. FALSE! General liability insurance coverage only covers claims of property or bodily damage. In other words, it doesn’t cover claims related to errors or omissions, unlike professional liability insurance coverage. So which one do you need? It depends on your job and on the risks associated with it.
  2. Professional liability insurance coverage is expensive. This is a tricky one because rates vary from insurance company to insurance company. If there is something that we know for a fact, however, it’s that insurance policies don’t HAVE to be expensive. Rates can be lowered with a bit of planning ahead, and professional liability insurance coverage is no different.
  3. Professional liability insurance is useless. What are the chances of me being sued? This myth seems to be a bit too prevalent for our liking. Here’s the thing: People sue. It doesn’t matter if you are the best at what you do or if you’ve never made a mistake in your professional life. All it takes is one thing to go wrong (or a disgruntled client) for you to have to defend yourself in court. Professional liability insurance coverage is NEVER useless. Just ask the hundreds of people who have had to go to court but were fortunate enough to be covered under this policy…

Categories:

Professional Liability Insurance/PLI

(Errors and Omissions Insurance)

  • Flawed professional advice and services that may have resulted in financial loss to the customer or client.
  • Protects professional individuals or companies from responsibility of the full cost of defending against a negligence claim and damages awarded in such a civil lawsuit.
    • Professional liability insurance covers the costs of judgments, settlements and legal defense.
    • Damages paid under a professional liability policy are typically financial rather than physical.