California Professional Liability Insurance is a type of insurance, that covers any professional errors, acts of negligence or omissions that may take place during the professional’s practice of their work. Professional Liability Insurance in California normally protects professionals such as lawyers, physicians, accountants and other practitioners of similar professions. The insurance provides coverage and protection to the traditional professions and quasi-professionals. It is also known as Errors and Omissions (E&O) in the United States.
California Professional Liability Insurance is one of the Northern California insurance services that should be invested in by all Bay Area professional functioning in the professional service industry, especially doctors, attorneys, or accountants. Generally, such professional liability insurance is intended for those professionals who are experts in their specific fields. The general liability insurance that is common does not cover or provide protection for any claims that are related to professional practices, be it malpractice, misrepresentation or negligence. Common claims that professional liability insurance covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.
There is a wide variety of California professional liability insurance available that is suited to the professional needs of different clients. But claims regarding cyber liability, data breaches, technological issues, technology security are not common in most policies. Also, all professional liability insurance does not cover for bodily injury or property damage, which is covered under general liability insurance. Under professional liability, only the financial losses of the third party, who has suffered, are covered most of the time.
Unlike other insurances that are long term, professional liability insurances are valid and functional only during the decided policy period. Any claims made before the retroactive date on the policy is not valid for coverage under the insurance. Also, the coverage of California professional liability insurance does not include any form of legal liability and criminal prosecutions. Intentional and dishonest acts by the professionals are not covered by the professional liability form of insurance. There is no coverage provided for defamation, libel and slander, breach of contract, breach of warranty, intellectual property, personal injury, cost of contact, etc. Coverage sometimes includes the defense costs even when legal action turns out to be baseless.
Professional liability insurance is available in different variants and names differing on the profession, such as medical and legal. For example, there is medical malpractice insurance meant for practicing medical professionals, errors and omissions insurance for real estate agents and many others.
A businesses’ professional liability insurance cost can be impacted by the type of business, the location of the business, years in the business, claims history, size of the company, number of employees, number of clients, and such.
If you are a Bay Area architect or structural engineer working on designing multi-million-dollar homes or other structures, you need to have this type of insurance in the event structural defects are detected. Consultants, sub-contractors, and all professionals executing services should invest in this type of a Northern California professional liability insurance.
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