Professional liability insurance is a kind of commercial insurance, mainly for those who need professional skills and knowledge of the industry, to provide professional liability protection for the insured. From a professional perspective, this article will explain in detail what professional liability policies cover.
Definition of professional liability policy
A professional liability policy is a type of commercial insurance that provides the insured with professional liability protection for those industries that require professional skills and knowledge.
Professional liability policies mainly cover the following:
Professional responsibility
Professional liability policies mainly cover professional liability, that is, the liability of a professional who causes property damage or personal injury to a third party due to a wrong act. For example, the compensation cost caused by the death of a patient due to the poor medical skills of a doctor, and the compensation cost caused by the loss of a client due to the wrong legal advice of a lawyer.
Property loss
Professional liability policies also cover property damage, that is, liability for third party property damage caused by the wrongful actions of professionals. For example, the compensation cost caused by the collapse of the building caused by the architect’s design error.
Personal injury
Professional liability policies also cover personal injury, which is the liability for personal injury of a third party caused by the wrongful conduct of a professional. For example, the compensation cost caused by a doctor’s surgical error resulting in a patient’s disability.
Tort liability
Professional liability policies also cover tort liability, that is, compensation liability caused by infringement of intellectual property rights.
Litigation cost
Professional liability policies also cover litigation costs, that is, those incurred as a result of the wrongful conduct of a professional.
Loss due to misunderstanding
Professional liability policies also cover losses due to misinterpretation, that is, losses arising from the misinterpretation of a third party as a result of the wrongful conduct of a professional.
Limitation of liability for professional liability policies
The limitation of professional liability policy mainly includes the following aspects:
Limited liability
Professional liability policies usually have a limit on the amount of compensation, which is a limit on the amount of compensation per accident or per year.
deductible
Professional liability policies usually set a deductible, that is, the insured is responsible for a certain amount of compensation, and the insurance company will only pay for the excess of the deductible.
Limits on the scope of professional responsibility
Professional liability policies usually limit the scope of professional liability, that is, only cover a specific professional liability and do not cover other professional liabilities.
No liability for intentional acts
Professional liability policies do not cover liability for intentional acts. For example, compensation costs caused by intentional injury to patients by doctors.
The role of professional liability policies
The function of professional liability policy mainly has the following aspects:
Protect the interests of professionals
Professional liability insurance policy can provide professional liability protection for professionals to protect their rights and interests in the professional field.
Protect the interests of the insured
Professional liability insurance policy can provide compensation protection for the insured and protect their interests and rights in the professional field.
Enhance the credibility of professionals
Professional liability insurance policy can improve the credibility of professionals, enhance their competitiveness and influence in the market.
Promote the development of the industry
Professional liability insurance policy can promote the development of the industry, improve the level of standardization and service quality of the industry.
Conclusion
Professional liability policies mainly cover professional liability, property damage, personal injury, tort liability, litigation costs and losses caused by misunderstanding. The limitation of liability of professional liability policy mainly includes limitation liability, deductible liability, limitation of professional liability scope and no liability for intentional act. The insurer needs to determine the type and scope of insurance liability according to the specific situation of the insured, and also needs to take into account the differences between different insurance types. Only when the division of insurance liability is scientific and reasonable can the interests of the insured be better protected.
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