Insurance, Professional Liability, and Malpractice Lawsuits

Medical malpractice is not a present generation invention. However, malpractice insurance, professional liability, and defensive medicine have found more relevance today as the medical profession sees continuing rise in malpractice cases filed against doctors. Whether these are merely media hype that blew isolated cases of flops under a cosmetic surgeon's knife out of proportion, or are indicators of a decline in the profession's conduct, malpractice insurance in the United States has lately become a federal issue.

Now, almost every doctor practicing in every US state carries malpractice insurance. Professional liability insurance provides doctors protection against financial losses when patients who might have been dissatisfied with their healthcare bring legal action against their doctors. In the medical profession, malpractice occurs when a doctor is said to have been negligent. What does that mean?

Negligence happens when a healthcare professional fails to do something any other professional of their qualification would have done under the same circumstances. Misdiagnosing a medical condition or being unable to diagnose a medical condition is malpractice. Not providing appropriate medical treatment or the undue delay of treatment for an already diagnosed illness is malpractice.

Professional code of ethics and total patient care have been around for centuries. Malpractice insurance, professional liability issues, and treatment protocols of medical institutions have gained front-page media attention in recent years because of frivolous lawsuits filed by sue-happy individuals. While not every malpractice lawsuit is illegitimate, doctors still need protect themselves - and their pockets - from those that are.

If you are in the healthcare profession, protecting yourself from this particular risk can save you from financial trouble. If you don't already carry one, start shopping for providers of this type of insurance now. When the actual malpractice lawsuit comes, you'll be faced with a significant stressor. Wouldn't it be one less burden on you if you don't have to worry about going bankrupt on top of losing your license?

How to Sort Out Professional Liability Insurance Through Your Life and Health Agent

Professional liability insurance is a necessity if you are working in certain fields. Doctors, other medical professionals, lawyers and others need this protection against lawsuits. No matter how well you perform your professional duties, there is still a chance that you will be sued. Even unfounded suits require the expenditure of time and money that you can't necessarily spare. As the incidence of lawsuits continues to increase, so does the need for liability insurance to protect your practice, even if the law does not mandate it for your particular profession. Liability insurance could save you a great deal of money and stress in the case of a wrongful suit against your business.

Depending on your insurance provider, you may be able to receive your professional liability insurance through your health and life insurance company. Ask your agent whether or not their company or one they are partnered with offers professional liability insurance. They will hopefully be able to help you find the plan best suited to your specific professional requirements. It's important that you can find an agent who's knowledgeable about your field and understands your particular needs. These needs will vary by profession and situation, so it's good to get to know your insurance agent well.

Don't be afraid to shop around for an agent who will offer a good combination of advice and affordable rates if your current health and life insurance agent can't provide what you're looking for. You may also be able to find companies that will offer life, health, and professional liability insurance plans through professional associations to which you belong. Small businesses can benefit from carrying liability coverage in case of accidents on the premises. Businesses who intend to put on a short-term event can sometimes acquire temporary insurance to protect them for that span of time, even if they don't normally operate in a fashion that requires insurance.

If you are able to get your professional liability insurance through your existing provider, your agent may be able to cut your costs by offering a package or umbrella deal. These deals may not exist with every provider and will vary. Members of specific organizations may find that those organizations have specific insurance providers which are willing to offer them a good deal on their insurance as well as other types of insurance. Contact any professional organizations you may be a part of to research this possibility.

One of the advantages to working with your existing health and life insurance agent to get professional liability insurance is that they will already know you. Working with a familiar face can simplify the sometimes stressful process of finding the right plan. Also, an agent who already knows you can more easily identify your particular needs. Depending on the company you already receive your health and life insurance from, you may be able to acquire insurance through them more simply than you would be able to get it from somewhere else.

Professional Liability Insurance

So you just graduated as a doctor, nurse, therapist, or pharmacist. Congratulations, you finally made it and now it is time to step into the real world and make a living while helping others. Plus you have to pay back all those student loans. However, your hard work has been rewarded with a very well paying career, but you must make sure you purchase professional liability insurance before you start healing the sick and curing diseases.

If you don't have liability insurance you could end up paying out thousand upon thousand of dollars if one of your patience brings a claim against you. Why take the chance in a sue happy society that we have created and with all the student loans you still have to pay back? Purchase your insurance and make sure you are protected.

Professional liability is not just for the hospitals and doctors anymore. Anybody that is employed in the medical field should have insurance to protect them.

There are different policies that you can look into purchasing. Most of the policies cover allegations of malpractice and you can get professional liability insurance to protect you or your medical business if you decide to go into business for yourself. The bottom like is that you need liability insurance before you ever even pick up a medical instrument.

Depending on what your specialty is you might need a specific type of professional liability insurance. Each specialty has different risks and different types of coverage. You can choose the amount of coverage you want along with the different limits you want on your coverage. There is a type of professional insurance for every type of worker in the medical field.

You should start by calling your state's insurance bureau and asking for information on professional liability insurance for medical personnel and business. The will be able to give you the steps that you will take to purchase your insurance and can give you the names and phone numbers of companies that provide professional liability insurance.

Professional Liability Insurance for Your Medical Business

Congratulations doctors, nurses, therapists, and pharmacists! You have studied hard, spent thousands upon thousands of dollars to attend school for what probably felt like thousands upon thousands of years, and now you are ready to enter the medical workforce. You are ready to start working for a medical business, or to open your own medical business. With a scalpel in one hand, a prescription pad in the other, and a stethoscope swinging around your neck, you are ready to cure the sick and save the dying.

However, before you start working, or open your own medical business, you must purchase professional liability insurance. Otherwise, you might find yourself paying out thousands upon thousands of dollars - again.

Remember, professional liability insurance isn't just for doctors and hospitals. Anyone working in the medical field should purchase professional liability insurance.

There are different kinds of professional liability insurance policies for you and your medical business, most of which cover allegations of malpractice. As a medical professional, you are familiar with professional liability insurance by now, and now that you are ready to start working or to open the doors of your own medical business, it is time to purchase your own professional liability insurance.

The kind of professional liability insurance you purchase for yourself and your medical business will usually depend on your specialty, the location of your medical business, and the demographics of your clientele. Along with your claims experiences and limits of liability you choose, these factors will also go into determining the cost of the professional liability insurance for yourself and your medical business, as well.

Search for professional liability insurance for yourself and your medical business based on the factors, and you can start by calling your state's insurance bureau and asking for information about professional liability insurance for medical professionals and medical businesses. They will be able to walk you through the steps of purchasing professional liability insurance.

Why Should Accountants and Bookkeepers Get Errors and Omissions Insurance?

A common misconception is that doctors and lawyers are the only professionals in need of Errors and Omissions (E&O) insurance. In fact, nearly every organization that provides a service to a client for a fee has E&O exposure, and because professional requirements are broadly defined in legal terms, Professional Liability insurance shields businesses from the unforeseen.

Errors and Omissions insurance, also known as Professional Liability Insurance, protects organizations or individuals against claims of professional negligence throughout a variety of professional services. This includes errors or omissions that the company actually made or that the client perceives were made. Errors and Omissions claims are not covered by General Liability insurance.

Insurance for Tax Preparers

Errors and Omissions insurance is particularly important for Certified Public Accountants, bookkeepers and tax preparers. Every year, in the U.S., thousands of suits are filed against tax preparers and bookkeepers, and, in the wake of nearly every corporate scandal, new lawsuits arise.

For bookkeepers, tax preparers and accountants, the tax and audit landscape is constantly changing. Clients rely on these professionals to be up-to-date and accurate, but no matter how polished a tax preparer or accountant is, and regardless of how seamless their risk management procedures are, mistakes will happen.

For instance, if a client is audited on their tax return, and there is in fact an error resulting from a simple miscalculation on the tax professional's part, the tax professional would be held responsible for any IRS-assessed penalties and interest the client was charged. Also, if the preparer overlooked or failed to include information provided by the client, they would also be at fault. Even if a client failed to provide a piece of information to the tax professional and then filed a frivolous suit, the tax preparer would still have to pay potentially exorbitant legal fees to defend themselves.

Even the most minor mistakes can cause substantial problems for clients, and without Errors and Omissions insurance for tax preparers, a firm or individual would likely not be able to survive even a single claim brought against it.

Bookkeepers Require Coverage Too!

Likewise, bookkeeper Errors and Omissions coverage would protect the bookkeeper in similar situations where figures might have been miscalculated or information was omitted, regardless of whether or not it was their fault or their client's fault.

History has shown that when a major corporate scandal is uncovered, racketeering lawsuits against accountants typically increase. According to an article published by the Manhattan Institute for Policy Research, during the late 1980s, in the midst of the Securities and Loan debacle, damage claims against accountants were estimated to be between one and four billion dollars - a figure that was purported to exceed the net capital of all accounting firms combined (Lawson & Olson). While some were involved in ill doings, others were reputable professionals. While a litigation onslaught of this magnitude may never be repeated, it is a risk that E&O insurance for accountants will safeguard against.

Most E&O policies will cover judgments, settlements and defense costs, even in cases in which the allegations are found to be frivolous. Without Errors and Omissions Insurance, the cost of paying settlements and court fees would leave many bookkeepers, accountants and tax preparers in extreme debt, or even bankruptcy.

Professional Liability Insurance

When professionals are hired, they are done so with the belief that they have the necessary expertise and knowledge to carry out the task to the best of their abilities. Added to that, there is a certain code of conduct they are expected to abide by while doing their jobs. When professionals fail to meet the standards desired of them and their skill levels fall much below expectations, they are liable to be taken to court for the loss they inflict upon the business of another person. Thus, they need professional liability insurance. Professional liability insurance is termed "errors and omissions" liability, when liability is confined to acts of negligence.

Professional liability insurance is an independent and specialty coverage. It is not provided under business owner's policies or homeowner's endorsements. Professional liability coverage covers its client against damages from claims of suspected negligent acts, errors or omissions in performance of the client's professional performance, etc. This could include a plethora of issues like software or system failure, loss of client data, non-performance, etc. Professional liability insurance coverage also includes the legal defense cost. The costs it covers, including court costs, are restricted to the coverage limits in the client's insurance policy.

There are different types of personal liability insurance coverage. Personal injury covers the client against claims of slander, libel and invasion of privacy. Intellectual property infringement coverage covers the client against claims of copyright infringement. Software processes and systems are commonly termed "intellectual properties." Also, worldwide coverage is provided if the suit is bought in America.

Optimizing PLI For Design Professionals

PLI stands for professional liability insurance. Professional liability insurance for engineers, architects and surveyors is often referred to as PLI for designers. PLI premiums are determined through a process involving the assessment of several factors over which designers (professional service type businesses) have some control. For example, design professionals can improve premiums by exploring the factors insurance carriers use in their quotation creation process for professional liability clients. Consequently the application process should be optimized for achieving the best possible outcome for the design firm or independent professional.

Design companies must make their business attractive to insurance carriers to obtain the best possible terms and pricing. The first step in this strategy is to identify the different risk factors and then present your design firm in the most positive way. While numerous factors determine the risk that a design firm poses to an insurance company, for the purpose of this discussion we will focus on the most critical areas. They include:

1. The location of the firm
2. The locations of design firm projects
3. Project types (traditional commercial projects such as offices, warehouse and retail are often more attractive to carriers than swimming pools and amusement parks).
4. Loss History

Project with high perceived risks are much less attractive to insurance carriers than projects with a nominal risk profile. Projects with emotional attachments or those which have a high loss exposure can be detrimental to design firm PLI. Though working within the genres is necessary, it is prudent to understand the exposures and manage the risk as much as possible.

Loss history is reviewed closely by insurance carriers. Design projects can results in significant claims. There also is the perception and statistical likelihood that past claims are a fair indicator of potential future claims activity. As a result, a design firm with some significant claims in their past generally pays a much higher rate than a similar firm with nominal past claims. Carriers can look as far back as ten years back when evaluating a larger firm's loss history.

If a firm has a history of claims it still possible to cast the exposure in a more positive light utilizing the appropriate approach and documentation. When carriers review the loss history of a design firm, the approach and documentation that the design firm utilizes will prove critical in the resulting PLI premiums. Ultimately, design firms along with their PLI broker must negotiate with insurance carriers to favorably characterize their firm and provide the mitigating information necessary to encourage the most competitive premium quotes.

What Types Of Liability Insurance Policies Might Your Business Need?

Commercial liability insurance covers you for risk. Every business has some form of risk. Your risk may be so small you may not need to buy insurance. But before you make that decision for yourself, you need to know what liability insurance covers you for.

The first type of insurance you need to consider is General liability insurance. GLI covers you for accidents that damage property and injure people. There are many documented cases of millions of dollars in damages being awarded as a result of claims being brought against businesses. If you think big business is the brunt of these lawsuits, you're mistaken. Many small businesses have also been sued and been forced to pay $1 Million dollars in damages or more.

If you are a store owner that has a physical location where customers visit, you probably need GLI. If you are a building contractor or other type of independent contractor who works with expensive material or around other people, chances are you will need at a bare minimum, a general liability insurance policy.

But this policy may not be enough...

If your business gives professional advice and services, then you may also need another form of commercial insurance, called Professional Liability Insurance. This is sometimes called Indemnity insurance or Errors and Omissions Insurance.

Professional liability insurance is different than GLI but most businesses buy these polices from the same insurer. Professional liability insurance covers you for things like failure to deliver services as promised, and damages from mistakes.

Here's an example of why it is important to consider both of these types of insurance...

Let's say you run a small computer shop in your town. Customers come to you with computer problems and to buy your custom made computers and retail accessories. One day a customer is in your shop and trips over a printer cable that one of your workers left sticking out from behind a counter. They hurt their back and they are out of work for months, costing them thousands of dollars in lost wages. In addition, they have some $50,000 in medical bills that their health insurance provider will not pay, since their attorneys determined it was your fault.

Guess who's liable in this unfortunate situation? That's right, your company -- otherwise knows as YOU. In this case, if you have general liability insurance then your insurance company would cover the cost of the settlement or judgement. The policy would also cover the legal costs involved with the case. Without this policy, you could personally be responsible for all the damages as well as the legal fees.

Now let's say you had GLI and you were covered for everything from that claim. Great news, right? No so fast Bucky...

Remember that employee who was somewhat responsible for the accident? Well he was so flustered that morning that he formatted the wrong hard drive and lost all the data on your most important client's laptop. Years of crucial data, family pictures and videos, business spreadsheets, passwords, credit card information and more. All wiped out in a flash.

Does general liability insurance cover you for that?

Sorry, it does not.

For something like that your business would need professional liability insurance. Remember, that's the policy that covers businesses and contractors for mistakes. And this was a big one. The client wants $100,000 for damages in lost time and business due to the data being wiped out on his computer. Many small businesses cannot absorb a loss of this magnitude and many companies have had to close up shop due to claims like this. Don't let this happen to your business.

Now that you know what types of Commercial Liability Insurance policies are available to you and what each covers, you can prepare for situations like this. Consult with an insurance agent or broker who handles business policies and determine the types and levels of insurance that are appropriate for your specific needs. Invest in the right policies and you'll have peace of mind knowing you are covered for anything that might happen.

Information Technology Insurance to Safeguard Your Business

What is insurance?

The importance of insurance is felt in every sphere of life. Life involves risk and while it is often unavoidable, you can certainly take steps to minimize its effects. Many individuals opt to buy insurance to protect their needs. Insurance is a contract between an insured and the insurer where the latter agrees to compensate the former against potential future losses upon payment of premiums.

Who needs Information Technology (IT) insurance?

Information technology services involve the provision of both products and advice and yet the purchase of appropriate insurance is usually the last decision a business will make. Typical IT insurance protects the firms from claims arising out of professional negligence or failure to perform professional duties. IT insurance firms also covers errors and omissions that result in loss or client data, system failure, claims of non-performance or careless overselling of services.

Professional Liability Insurance

The basic idea behind professional liability insurance is that it provides protection against Claims arising from third party loss i.e. settlement is not made to the Insured, but to the third party who has suffered the loss. Any act, error or omission that results in a direct financial loss to a third party client may result in allegations of negligence against the company which can result in both financial loss and also damage to reputation and good will. In the event of a Claim, some insurers also agree to pay defence costs as well as any settlement amounts up to the limit of indemnity taken under the policy.

The provision of information technology services includes computer consultancy, database management, hardware networking, web design and development and internet services.. Companies providing internet services can also be subject to substantial claims resulting from allegations of copyright and trademark infringement or the effects of computer viruses. Web designers may inadvertently use copyright protected materials while conducting their professional services which may result in substantial fines and penalties..
General Liability Insurance

The General Liability section of an IT insurance policy ensures the company's physical assets and equipment are covered, in addition to providing cover for any product damage that a third party may suffer as a result of the company's professional services. The insurer provides protection against fire, theft, flood and accidental damage. General liability insurance does not cover damages incurred as a result of mechanical failure, virus attacks or equipment left behind in public transport or public places. If equipment is stolen, or the damage is beyond economic repair, the insurer may consider providing the insured with replacement equipment.

Note

However, it is important to note that most Information Technology liability policies are written on a 'claims made basis'. This means that you must have an IT insurance policy in place at the time a Claim is made against you, rather than the time the alleged act, error or omission is committed. Therefore, the policy in place at the time a Claim is made against you is the policy that will respond to that Claim, rather than a policy in place at the time of the alleged act, error or omission.

Professional Liability Insurance Costs for New Architectural Firms

A ubiquitous concern among architects who wish to start their own practice is "How much will my professional liability insurance cost?" Coverage costs vary by:

· State in which the practice is located,

· The limits of coverage purchased,

· Project types being designed, and

· The experience loss history of the Architect applying for coverage.

The cost of insurance also varies annually as the insurance market hardens or softens.

What should an architect expect upon applying for PLI (professional liability insurance) for the first time? Professional liability insurance protects firms against claims and/or allegations of negligence, errors or omissions in delivery of professional services. In order for an insurance company to evaluate and price their risk in insuring a firm, they require completion of an application. The application captures information about business locale, annual revenue, the discipline and project mix of the firm, and the risk management protocols implemented to help minimize exposure to claims. They will also inquire regarding claims history.

When in the process of starting a new firm, the underwriter will expect estimates of anticipated business. A solid business plan goes a long way in terms of providing underwriters comfort, so submitting a brief narrative stating goals and direction for the new firm is crucial. Previous project experience will also be highly relevant. In order to qualify for Architects Professional Liability insurance, you must hold a registered and/or licensed architectural license.

To get a quote, one must submit:

· A complete application. Be judicious, as submissions compiled hastily tend to be priced higher or declined by underwriters.

· A resume showing representative projects, education and any Society/Association affiliations held. Associations convey professional commitment to the insurer. Engagement in continuing education has a similar effect.

· A mission statement including the direction intended for the business goals for growth.

Once committed to purchasing a policy, annual renewal will be necessary to maintain coverage on work performed under the new firm. Professional liability insurance is written on a "claims-made" basis. This means a policy must be in force at the time a claim is made in order for coverage to apply. Also all policies contain a "retroactive date", which is the inception date of the initial professional liability insurance policy.

It is not possible to get coverage for work that you performed before applying for professional liability insurance. In essence, the key to covering architectural professional liability is to purchase from a trustworthy provider, and to do so immediately upon inception of a practice.

How Verified Liability Insurance Attracts Contractors

If you are a small information technology (IT) business and finding it hard to get contractors to work with your company, maybe you are overlooking the importance of verified liability insurance. Having business insurance can really add a level of professionalism and ease tension when getting work from outside contractors.

Let Them Know You Trust Their Abilities

Let's face it, no one wants to work for a small IT company if they don't respect their workers and offer coverage in dangerous or risky situations. Professional liability insurance makes contractors more comfortable because their skills are backed up by your company's coverage. You basically instill confidence in contractors when you offer professional liability insurance.

Have Control of Any Detrimental Situation

In addition, if you hire a contractor, you both want to make sure things run smoothly. If something goes wrong, though, you want things to be under control. If the contractor looses client information or data, doesn't show up, or there's a system failure, your professional liability insurance will put all three parties (you, the contractor, and the client) at ease. It's the perfect solution.

Verified Liability Insurance Eases Contractors By:

o Instilling confidence in their work

o Protecting them and you from injury or unsatisfactory service/product

o Adding comfort for all parties involved

o Building stronger trust between you and the contractor

o Ensuring the project will run smoothly

o Proving that your business is professional

Overview of General Liability Insurance

Most companies will find a general liability insurance package that lines up with their business operations. If you are a small IT business without many risky scenarios, general liability insurance is probably a great money-saving option. It will cover most accidents and, most importantly, cover destruction or theft to your computer's software and hardware. General liability insurance covers almost everything related to bodily injury, property damage, products-completed operations, fire or explosion damage, and legal defense costs. There are also a ton of other options that usually come with general liability insurance.

Add Professional Liability Insurance to the Mix

While general liability insurance covers mostly physical damage or injury, professional liability insurance will cover you if a client claims financial loss due to your service or product. This is extremely important for your business if you are contracting work out. You never know when a little slip up will cause a catastrophe for your client. Get assistance from a professional broker to find a good insurance rate for your specific business. There are a wide range of options, so invest your time and money in finding the appropriate professional liability insurance to suit your specific needs.

Show Off Your Business's Professionalism

A sense of professionalism really adds trust and will make your relationship with the contractor much stronger. Business insurance really proves that you are an honest business owner. If you can prove to contractors that you mean business and want to make sure all parties are covered in messy situations, they will be much more willing to work with you.

Make Negotiations Run Smoothly

Negotiations will also move along much quicker without conflict. There's nothing worse than getting close to an agreement and then it falling through at the last minute, leaving you without a contractor. With liability insurance backing you up, it's much more likely that you will reach an easy agreement with the contractor.

So start building your contractor relationships today and find insurance that will suit you and your company.