According to Statista, more than 1.78 million people were employed full-time in Alberta in 2020. From this number, almost 150,000 people were working in the professional, scientific, and technical services.
The data shows that professional services are among the top industries offering employment to people in Alberta.
Unfortunately, when you provide professional services, you also face significant risks. And to protect yourself from these risks, you need a business insurance plan in Albertato give you the right coverage when unfortunate things happen.
But is professional liability insurance the right plan for you?
What is Professional Liability Insurance?
Professional liability insurance is the type of insurance that protects professionals from losses acquired due to claims made against them. These claims, which clients or customers commonly make, are negligence, malpractice, and misrepresentation.
When clients make such claims, the legal process can be complicated, costing the professional significant time, money, and effort.
However, professional liability insurance can protect yourself and your business from the above situation. It provides special coverage that other insurance policies don’t cover and is only active when a claim is made during the policy period.
However, professional liability insurance does not include:
● Criminal prosecution.
● Legal liability under civil law.
● Some forms of cyber liability.
What is the Different Between Professional Liability and General Liability Insurance?
General liability and professional liability insurance may sound the same. But these insurance plans are quite different from each other.
Although both types cover liabilities, the difference is in the kind of risks they protect you against.
General liability insurance mainly covers physical risks, such as damage to others’ property and bodily injuries. This insurance plan is one of the most common types that business owners acquire.
On the other hand, professional liability insurance focuses on protecting the insured from more abstract risks, unlike the physical threats in general liability insurance. These abstract risks include negligent acts and errors in services provided. And as the name suggests, it is commonly acquired by professionals.
Factors to Consider Before Getting Professional Liability Insurance
So, do you really need professional liability insurance?
To answer this question, you need to identify your risks. If you work with clients or customers and provide professional services, you most certainly need this kind of business insurance plan in Alberta. And if you’re a professional running a business, including law firms, accounting companies, technology services, and other related industries, professional liability insurance is for you.
Additionally, some states require certain businesses, such as those in the healthcare or medical industry, to have professional liability insurance.
So, before you get professional liability insurance as your business insurance plan in Alberta, ensure you know what it covers and understand its benefits to your business. Doing so will help you determine whether it’s the right insurance plan for you, and if it is, you will know whether you need additional policies on top of it or not.
However, it’s important to remember that you need a qualified and reliable insurance agent or broker to walk you through the insurance plan and help you compare different policies. When everything is laid out before you, you can easily choose the most suitable insurance for the best protection for you and your business.
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