Liability insurance includes different coverage types to help protect you and your business if someone files a lawsuit against the organization. Professional liability coverage insurance is a policy that protects insured individuals against financial liabilities resulting from property damage or injury to a person. The insurance offers you coverage for any debt or legal cost you are found guilty of in certain situations during the policy period. Read on to know more about liability insurance:

What does a liability insurance policy cover?

The policy can provide coverage for the following.

Lawsuits against the insured person

Settlement and investigation expenses

Fees of the investigating officer or lawyer hired to sue the third parties

Medical expenses due to an accident on the insured individual’s premises

Medical expenses due to the insured individual’s promotional advertisements, products, or official operations

Damage to third parties while visiting the insured individual’s office

What is not covered?

A professional liability insurance cost does not cover the following expenses.

Intentional damages and willful misconduct

Loss in the market and goodwill

Damage or losses because of natural calamities like earthquakes, volcanic eruptions, floods, storms, typhoons, etc.

Libel and slander.

Expenses for defamation, wrongful eviction, and false arrest

Infringement of trademark, copyright, patent, trade name, etc.

Penalties and fines

Transportation of dangerous materials and substances

Loss or damage due to acts of God, nuclear war, etc.

Liability insurance plans

A professional liability insurance policy is available for all customers and varies depending on their requirements and line of work.

We have curated a list of the common forms of liability insurance plans below.

Public Liability Insurance: It protects a business if any third-party liability arises because of property damage or injury. Any law-affected public liability or exposure can destroy a business organization’s promising future. Most companies procure insurance to avoid unnecessary risks.

Product Liability Insurance: It covers financial and legal liabilities because of bodily injury, accidental death, or illness due to a third party or third-party property damage. Most insurance companies provide it as a standalone policy or as a part of general liability insurance.

Employer Liability Insurance: This insurance offers coverages to employers for liabilities they may incur if an employee gets injured during the employment period because of the job. The insurance covers multiple negligence lawsuits against employers that include occupational diseases or work-related injuries.

Third-Party Liability Insurance: This type of insurance covers damages caused by the insurer to another individual or business. Here, the insured individual is the first party, the insurance company is the second party, and the injured or affected individual or company is the third party who makes the claims.

How to decide the premium amount?

The premium amount that the insured individual must pay gets worked out depending on the base rate of the insurance company and its requirements. The risk severity of the specific company and its products is another significant factor that helps to decide the premium amount. So, the higher the risk, the higher the premium amount. Additional factors for the premium amount decision include the company’s approach, the risk size, claim history, etc.

Insurance companies also consider the following factors when deciding the premium amount.

Number of previous claims

The company’s approach toward the risk

The company’s business record

How to raise a claim?

You can follow these steps to raise a claim under professional liability insurance coverage:

Analyze the policy documents to know the benefits of permission to your claim and how it can get filed.

Inform the insurance provider via email or a call. You can also visit a nearby branch to initiate your claim.

Report at the nearest police station or concerned authorities if there is a case of death or theft. The insurance company requires the report to add to the claim form and other documents.

Take the insurance supervisor to examine the incident site or the damage caused to create a report and decide the compensation.

Seek help from the insurer to update your claim status. You can also check the status online to know about further proceedings.

NSO liability insurance and its significance

Physicians must always carry insurance to protect themselves, irrespective of their experience or dedication to work. There is a risk that a patient or the family members may file a malpractice complaint against the physicians and their teams. Not only physicians but patients can file malpractice claims against anyone who provides medical care of any kind.

So, physicians, physician assistants, and nurses must know the significance of having insurance coverage. Therefore, they must get NSO liability insurance which is the best way to protect themselves against medical malpractice claims. Such claims may result in the loss of personal assets or professional licenses.

So, medical practitioners must get NSO liability insurance for the following reasons:
To pay for damage claims

To cover defense fees for trials

To protect personal assets

To protect the professional license

Moreover, the NSO liability coverage includes the following benefits.

Professional liability coverage

Trial defense expenses

License protection against disciplinary charges

Cost coverage for information privacy

Sexual misconduct claim coverage

Assault coverage

Portable coverage from one employer to another

To sum it up, an organization is vulnerable to multiple risks in today’s dynamic business environment. Several parties may make different claims against a business organization – from customers and employees to clients and stakeholders. Such claim trials can cause catastrophic losses to business organizations, restrict cash flows, and disturb daily functioning activities.

The solution here is to adopt an insurance policy that offers coverage for individuals and business organizations from risks of getting held or sued for injury, malpractice, and negligence. The insured individual or business gets protected from legal costs and payouts for which the policyholder is deemed responsible. You can find multiple professional insurance coverage policies to protect your business from liability claims.

So, what are you waiting for? Refer to this guide while choosing an insurance policy, and choose a suitable liability insurance policy if you want optimum protection for yourself, your family, and your business.