Professional liability insurance policies generally help protect professionals from covered liability claims that are related to the work they do. Since professionals are involved in various lines of work and exposed to different risks, insurers offer a number of professional liability policies. Here are some of the professional liability policies that Massachusetts insurers offer. Which is right for you will depend on the line of work you’re involved in.
What Types of Professional Liability Insurance Policies Are Available in Massachusetts, And Which Should I Have?
Medical Malpractice Insurance
Medical malpractice insurance may be the most well-known form of professional liability insurance. Medical malpractice policies help shield doctors and other medical providers from certain lawsuits that accuse them of making a mistake in the care they provide. Because these lawsuits can be expensive, this insurance often provides large amounts of coverage.
As mentioned, medical malpractice insurance is for medical providers. Most doctors are aware they should (and are often required by Massachusetts state law to) carry it. This insurance isn’t just for doctors, though. Anyone who provides medical care in an official capacity may be sued for mistreating a patient and, therefore, may want to protect themselves with a medical malpractice policy.
Legal Malpractice Insurance
Legal malpractice insurance is a highly specialized form of professional liability coverage that’s designed for attorneys. This form of coverage falls under the broader umbrella of “errors and omissions coverage” (see below), but these policies’ terms, conditions and exclusions are written specifically with attorneys in mind.
Most legal malpractice policies are designed to cover many of the roles attorneys may take on in their day-to-day work. In addition to covering the dispensation of legal advice, policies might also cover situations where an attorney acts as a notary public, title agent, director of a professional organization, executor or trustee.
Errors and Omissions Insurance
Errors and omissions policies are generally used to professionals who offer advice for a living. As mentioned, legal malpractice insurance is one example of a highly specialized errors and omissions policy. Errors and omissions policies are often also available for:
Accountants, who offer tax and other financial advice
Insurance agents, who offer insurance-related advice
Real estate brokers and agents, who offer advice on the purchase and sale of property
Investment advisors, who offer advice on investing in mutual funds, stocks and other assets
Landscapers, who sometimes offer advice on landscaping residential or commercial properties
Tradespeople, who sometimes offer advice related to their particular trade
In most cases, errors and omissions policies are somewhat specialized for the type of professional who’s purchasing them. For example, the policy purchased by a plumber or other tradesperson will likely be slightly different from the policy bought by an accountant. Legal malpractice insurance is particularly specialized because of the many potential risks attorneys face.
Directors and Officers Insurance
Directors and officers insurance is different from all the other types of professional liability coverage. Rather than being specialized based on a professional’s line of work, directors and officers policies usually are based on a person’s position within an organization. These policies are used to protect directors and officers of businesses, nonprofits and other organizations from the potential risks that are inherent to their leadership positions.
Anyone who is has a major leadership role within a business or organization may benefit from having a directors and officers policy. Leaders have more responsibility no matter what organization they’re leading, and they can, therefore, be held more accountable. A directors and officers liability policy is the type of professional liability coverage that’s specifically designed to help protect against this particular type of risk exposure.
Talk to an Agent in Massachusetts About Professional Liability Insurance
To get help finding the professional liability insurance that’s right for you, contact an independent insurance agent. They’ll be able to recommend a specific type of coverage, and they can request quotes for policies from different insurers in Massachusetts.