Professional Liability Insurance covers the cost of certain legal fees, and settlements that you may face as a result of claims brought against you based on the advice or services you have provided.
While your employer may have Professional Liability Insurance, it is important to have your own policy for many reasons.
What’s at risk?
Time. Regardless of guilt or innocence, legal proceedings can take months, if not years, to settle. That can mean time away from your work in discovery and court. A Professional Liability policy will help provide professional support so that you do not have to take time away from running your business to deal with litigation.
Money. Even if you are absolved of any wrongdoing, defense costs can be significant. From discovery to settlement, legal fees may cost thousands, consuming your savings and racking up debt. With Professional Liability Insurance you can choose a limit that suits your needs to cover these expenses.
Reputation. In the professional landscape, your reputation can mean everything. Defending a case of negligence can seriously tarnish your reputation and the image you’ve worked hard to build. By securing Professional Liability Insurance, you’re showing that you take your profession seriously and you stand ready to protect your good name.
Isn’t my employer’s coverage good enough?
Probably not. While your employer may have Professional Liability policy in place, it may not offer you the coverage you need. Ask your employer these questions to determine whether or not you need your own policy.
What is the limit of liability? It’s important the policy has a limit of insurance that covers the costs of defending a case at today’s rates. A limit of $250,000 may not be enough to provide full protection for all resulting expenses.
Is the policy a shared limit policy? It’s common for employer-sponsored policies to be offer limit policies. This means all employees are covered as additional insureds under a blanket liability policy in the name of the employer, with one shared limit. Just one or two claims within a policy period can potentially exhaust the aggregate limit, leaving little funds for additional claims.
What scope of services are covered? Depending on the complexity or diversity of your job, some of the types of work you do may be excluded under your employer’s policy.
Is attorney representation provided and expenses covered by the insurance? Will coverage pay you for lost wages due to time away from work? Does the policy offer tail coverage if your employment with the insured employer ends? It’s not typical that an employer’s insurance policy will includes this coverage. With a personal Professional Liability policy through Lockton Affinity, you can receive these benefits and more.
Fitness Professionals need Professional Liability Insurance on their own. Professional Liability Insurance from Lockton Affinity is tailored for the fitness and wellness industry. It’s coverage you hope to never use, but can’t afford not to have.