PROFESSIONAL LIABILITY INSURANCE IN FLORIDA
Professional liability insurance in Florida is designed to protect the business, income, and personal possession of a variety of professionals.
Most people think of professional liability insurance as protection for lawyers and medical professionals. There are many more professionals that need the protection of professional liability insurance including insurance agents, architects, chemists, engineers, stockbrokers, and performers. Just like healthcare providers need medical malpractice insurance, even beauticians and cosmetologists need protection from litigation that professional liability insurance can provide.
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It is a fact of life that we live in a world that is increasingly willing to sue for a real or perceived injury or violation of a basic right. Professionals need to protect their business, reputation, and income with professional liability insurance.
As is the case with other types of business insurance, the amount of professional liability insurance that an individual needs depends on the business that they are in and the amount of financial damage they may incur.
Most professionals are at risk to a variable amount of litigation and financial danger at different times depending on the project, lawsuit, or type of medical treatment they are involved in at any given time. It is usually best to prepare for the worst. This simply means that a professional that is at risk for being sued should carry as much professional liability insurance as needed for the worst-case scenario.
All litigation that is covered by Florida professional liability insurance is civil litigation. While you will not go to jail, the punitive damages that a jury or judge may award a person that sues you could exceed the entire amount of money you will make in your entire career.
Professional liability insurance provides professionals with added protection that general liability insurance does not. The additional protection includes coverage for inaccurate advice, violation of good faith, any misrepresentation of qualifications or quality of work, and negligence. These areas of the law are extremely subject to interpretation and a judgment against you as a professional may depend on the jurisdiction that you are sued in.
Even if you give a client the best advice that you can back up with solid evidence at the time you give the advice, you can still be sued if the result does not fit the client’s expectations. Violation of good faith suits claim that a professional acted directly and with intention to defraud the client. Misrepresentation means that a professional willingly and knowingly led a client to believe a false statement. Misrepresentation is the most frequently used grounds for suing a professional. Negligence means you did not perform all duties that a professional would perform in a particular situation.
Each of the four types of litigation can be covered in separate parts of your Florida professional liability policy. A professional needs professional liability insurance because at some point in their career a client will sue them. You may have done nothing wrong, but that fact will not protect you from financial loss if you lose the case.
Things to Consider in Your Professional Liability Insurance Policy
You can get competitive professional liability insurance from Moran Insurance in Florida. We are licensed insurance agents and will work with you to find the best commercial insurance package that suits both your needs and your budget.
There are some important points to consider as you compare policies. The following should not be overlooked.
- Coverage Sublimits: When looking at your coverage options, be sure to make a distinction between aggregate coverage and sublimits. The aggregate coverage is a figure that states the total amount of coverage related to a liability claim. Sublimits place smaller limitations within the aggregate on various aspects of a legal defense. As an example, a $1 million policy may only provide $100,000 of coverage for damages. Understanding sublimits will allow you to choose a more flexible policy.
- Deductibles: A policy with a low deductible will attract higher premiums, but your out of pocket cost when making a claim will be lower. A policy with a high deductible will attract lower premiums, but you will pay more if you need to make a claim. The right choice for you depends on your business and exposure to risk. Our insurance professionals will help you to find the right balance that works for your budget.
- The Cancellation Policy: Your business needs could change during the calendar year, and you may need to adjust your insurance coverage. Having the freedom to cancel is something that you should consider. Some policies come with a 10% additional fee on top of pending premiums. Moran Insurance will work to secure the best cancellation terms in your next policy.
- Right to Defend vs Duty to Defend: There are typically two types of policies that are offered with liability insurance Florida. Right to Defend (also known as Reimbursement) is considered the lesser form of coverage. With this type of policy, an insurer can respond to claims made against you but is not obligated to. They will determine coverage based on the specifics of the case brought against you. Duty to Defend means that the insurer will be obligated to provide coverage if it fits the terms of your policy.
If you’re looking for the most comprehensive and affordable professional liability insurance policy, it’s time to talk to the team at Moran Insurance. We can give you peace of mind to run your business without the fear of financially crippling litigation. Talk to us today for your obligation free consultation.