What is Professional Liability?

“Professional Liability Insurance is reported on a claims-made policy basis. This means that the claim must be made and reported to your insurance company during the policy period in order for there to be coverage.

“The policy also provides an attorney to represent you. It'll pay on your behalf the cost occurred for that defense, as well as any costs incurred in an indemnification or settlement.

“Let me give an example:

“You're a new attorney, you're just out of law school, open up your own shop. It's year one, and you're in practice and unknown to you there's an error in some of your documentation. Three years later your client finds out that there was an error, and they've been damaged. At that point they're going to file a claim against you.

“In order for you to have coverage you're going to need to report that claim to your current insurance carrier, and provided that you've had continuous coverage since the inception date of your first year's policy, that claim will be covered notwithstanding the fact that it happened during the first year of your practice.”

Talk to one of our experts today!

If you're ready to shop for professional liability insurance, contact ProDefender. We can help you understand what levels of coverage you need and get the best rates on a policy to protect your assets and your professional reputation.