Business professionals of all types take on certain risks in the process of providing services for others. When someone is accused of providing inadequate services or breaching confidentiality, having the right insurance protection is a must. With this information, you will learn about protecting yourself against unwarranted claims by purchasing professional insurance.

Common Professional Liability Claims

There are several different reasons individuals can bring a professional liability claim against a company owner or professional. Understanding the risks of these claims will help individuals to ensure they are properly protected with Professional indemnity insurance. Some of the common claims result from the following.  

  • Undelivered services
  • Errors and oversights
  • Services that are below industry standards

Who Should Consider Getting Insurance Protection?

Although one of the most common types of liability claims is medical malpractice, there are actually many professionals that can be in danger of a professional liability claim. In some states, certain professionals are required to carry this type of insurance policy or they cannot provide services. The following professionals should consider carrying this insurance protection.

  • Doctors
  • Lawyers
  • Accountants
  • Engineers
  • Architects
  • IT consultants
  • Real estate agents
  • Software developers
  • Investment advisors

Most professionals who provide services to individuals or companies need to consider purchasing an insurance policy to protect themselves, should unwarranted claims be filed against them. This insurance can help to protect the individual and prevent them from being forced to pay damages out of their own pocket.

What Does This Insurance Cover?

Professional insurance covers personal injuries, property damage, and financial loss that result from negligent services being provided. This type of insurance policy will not only pay for the damages of the claimant, but it will also provide for the costs of seeking legal help and for court fees.

Getting the right level of coverage is essential. Some professions require individuals to carry a certain level of coverage. The required level of coverage is typically higher for higher risk professions, such as medical care providers and attorneys. The greater the risk, the more coverage is needed.

How to Purchase the Right Level of Coverage

With PI premiums steadily rising, professionals are sometimes left juggling purchasing too much or having too little coverage. Of course, the more coverage that is purchased, the greater the costs in premiums.

The amount of coverage purchased will depend on the size of the business or the type of work being performed. As stated before, higher risk professionals, such as doctors and lawyers will likely need to purchase more insurance coverage than a small software developer.

It is wise for professionals to sit down with an insurance agent and go over their needs to ensure they are making the right choice in coverage. In most cases, it is better to have more coverage than needed over having too little. No one wants to be faced with an unwarranted liability claim and not having enough insurance coverage to provide for the costs of defending the claim.


With professional insurance, business professionals can rest assured they will be properly protected, should unwarranted liability claims be waged against them. Having the right level of coverage is paramount for many business professionals so they can rest assured they are properly covered if something goes wrong in the course of them providing services. 

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