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Many professionals may want to obtain a Professional Liability Insurance policy in order to protect themselves from possible claims of negligence that clients, or in the case of doctors, patients, may make after receiving services. For doctors, their type of Professional Liability Insurance is commonly known as Medical Malpractice insurance. It is imperative that doctors have medical malpractice insurance as malpractice suits are generally fairly costly payouts if won. Although it is usually fairly expensive, a doctor could be placing his or her practice at serious risk by neglecting to obtain medical malpractice insurance.

Another type of Professional Liability Insurance policy that may be taken out by a notary, a real estate broker, or a website developer, is known as an Errors and Omissions Insurance policy. Errors and Omissions Insurance (E&O Insurance) protects professionals from having to pay out the full cost of lawyers and settlement costs should they be sued for “negligent” services. E&O Insurance is considered to be cost prohibitive and is generally obtained when it is required under a contract.

The decision of whether or not to obtain Professional Liability Insurance depends on your business model. It might make sense for a giant architectural firm, whose revenue is very high, but not make sense for an individual architect running a private firm, as it is very expensive.

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