Why do you need insurance: liability civil professional?

Despite all the efforts deployed to achieve a working perfect, you and/or your company can be prosecuted by a dissatisfied customer. It alleging that an error or omission occurred. Your responsibility extends even to the gestures and actions by subcontractors that you use.

Errors or omissions can lead to heavy financial losses for you or your business.

Difference between General liability and professional liability:

-General liability insurance policy covers, inter alia, personal injury and/or property damage to others. It excludes financial losses resulting from an error or a professional failure.

-The professional civil liability insurance cover, in others, errors or omissions which you are legally liable in the performance of a professional service.

Reasons why businesses and professionals may be in need of a professional liability insurance:

          ·         Because a professional can be prosecuted for actual errors or suspected of;

          ·         Because a company can be held liable for the acts of its professionals;

          ·         An unhappy customer = risk of prosecution;

          ·         Defence costs can be very expensive;

          ·         More and more contracts require a professional liability insurance.

Domain public versus that of the private sector

All biologists who pose a professional Act should have a professional liability insurance that its scope be the public or private domain.

 What is covered?

Any negligent act, error or erroneous omission, or misleading committed or made, actually or allegedly, in the provision of professional services or the failure to provide.

If your business provides services to third parties for remuneration - entrusts subcontracting work - it can present a significant risk of professional liability. Just as you purchase insurance for your other risk, the possibility of professional liability is real and must be taken into account. Unlike other types of claims, the professional liability claims are not frequent but are generally very expensive, ranging from tens of thousands to millions of dollars.

Companies are today more pressure to meet the heightened expectations of their customers. These services increase the risk of professional liability. It is also more important to hold professional liability insurance today than in the past, because of the evolution of the legal profession and business. Indeed, due to the ever-increasing financial burden of enterprises and the more frequent recourse to prosecution as a means of dispute resolution, it is more likely to be named in an action in professional liability than before.

Remember that the best time to purchase insurance is when your history of claims are favorable and not just after you have been appointed in a prosecution. In addition, the absence of previous claims can also indicate that the contractual practices and management of your business are excellent.

The professional liability insurance is too expensive

This is fake. Taking into account of the protection which it provides overall underwritten insurance, professional liability insurance premiums are not very expensive. Professional liability insurance claims are usually not common but tend to be very large ranging from tens of thousands to millions of dollars. This is a substantial amount of self-insurance. The professional liability insurance premiums can also be reduced by managing risk factors, including the choice of higher deductibles, well-written contracts and a good quality control.

My business is small

The professional liability claims are generally not common but tend to be very expensive. Small businesses often do not have the financial strength to set such a claim. Without insurance, the heavy expense could force a smaller company to make layoffs, cut benefits, or even go bankrupt.

Then, the best course of action is to insurance professional liability for your company!