Professional Liability Insurance policy is a very wide subject or term. Before going into the details of professional insurance policy, it is vital to know the connection of insurance and profession. Today, insurance has become a demanding field. From life to property and professional, all needs insurance for getting safe and assured against risks or perils. Insurance doesn't have power or position to stop or avoid risk and peril; in fact it helps in providing safety and security against the risk taken place. Insurance on the grounds of professional liability gives security and safety against the professional failure or infrastructure.
Professional Liability Insurance:
Professional Liability and insurance policy is limited to the scope of contact and act chosen while signing the insurance form. Professional liability policy covers the financial loss done to others by your professional negligence. For an e.g. If you are a doctor and have performed some mistake while operating a patient then your professional liability policy can help you by paying some financial compensation to your patient against your negligence towards work and profession. You can take the same kind of an example for an accountant, beautician or magician. This is one of the rare insurance policy and very few people have actually heard about it.
Myths and beliefs:
Professional insurance policy covers the kind of skills and designing that makes your profession known to others. It helps in maintaining your security against the small of negligence caused to others by your professional service. Many people opt for general liability insurance coverage thinking that professional insurance coverage might not serve them in a way they need but it is not true or valid. Looking on the norms of profession and skills, it is vital to choose the kind of professional insurance coverage that saves your risks and damages. Proper liability professional insurance coverage is a better option for saving you from financial harm and damage.
Paying proper insurance installments is your duty for making your policy continued till its expiry. Events taken place during the lapse period of policy are not covered under professional liability insurance, hence you should pay the premiums on time taking care that it doesn't lapse or get discontinue. Also, Claims are responsible only when they occur during the period of policy and not after its expiry. (Note: Your premium amount depends upon the kind of professional and skills involved.)