Professional Liability  Insurance in Massachusetts

What types of professional liability policies are available to professionals?

In order to meet the varied needs of these many professions, insurance companies offer several different types of professional liability coverage. The main types of policies are:

• Medical Malpractice Insurance
• Legal Malpractice Insurance
• Errors and Omissions (E&O) Insurance 
• Directors and Officers (D&O) Insurance

Errors and omissions coverage is a broadly useful professional liability option for people who mainly give advice. It might be useful to financial planners, real estate agents, and consultants, for example.

Directors and officers insurance isn’t so much for a particular industry, but rather for certain roles. Leaders of nonprofit organizations and businesses sometimes get this coverage, as it might offer protection if they’re sued over a decision they made.

An insurance agent specializing in professional liability can help professionals identify the right type of policy for their work.

Do employees receive professional liability coverage from their employer?

Employees are often covered under their employer’s professional liability policy when doing work for that employer. Any coverage like this normally won’t extend to pro bono work done for charities, or to side work that a professional might take on. 

Professionals who do work outside of their main employment, whether pro bono or charged, should consult a knowledgeable insurance agent. An agent can review the situation, and then make a recommendation on how best to procure coverage.

Do independent contractors need their own professional liability policy?

Independent contractors often need their own professional liability policy, as they may not be covered by the business that hires them. Sometimes a hiring business will extend coverage, but this is far from standard practice in all situations.

Professionals taking on contract work should consult with an insurance agent, to assess their professional liability needs and options.

Do all professional liability policies cover working online?

Most professional liability policies are able to cover online work, but there might still be a few exceptions. It’s important to confirm that a policy does indeed cover working online and not just assume it does.

How much are the premiums charged for professional liability policies?

The cost of professional liability coverage varies widely, depending on factors such as the professional’s field, experience, and claims history. Medical malpractice will likely cost more than errors and omissions, but there’s significant variance even within the same category.

An independent insurance agent can help check premiums from several insurance companies. Since independent agents don’t work for any one insurance company, they’re able to request custom quotes from several insurers in the state.