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Who Needs Professional Liability Insurance?

Professionals have advanced skills and knowledge that are lacking in non-professionals. However, their years of training do not guarantee that human errors will not happen. They are legally responsible for any harm that comes to their clients. It is recommended that all types of professionals consider getting professional liability coverage.

Mental Health Professionals

Mental health professionals, such as therapists and clinical psychologists, should obtain professional liability insurance if they are full-time, part-time or self-employed workers. They are trained to help people cope with mental, emotional or behavioral issues. Their clients are not required to follow the advice that these professionals give, but they can still sue if the advice given was wrong or more harmful than beneficial. However, most liability cases involving mental health providers are based on patient privacy and confidentiality issues.

Medical Providers

Medical malpractice is the name for the professional liability insurance that physicians, nurses and surgeons use. This is the failure to provide effective medical treatment that meets acceptable standards of practice. This lack of proper treatment may have resulted in a patient’s injury or death. Some forms of medical malpractice result in civil cases, while others are criminal cases that lead to fines with or without imprisonment.

Legal Professionals

Lawyers deal with serious issues that involve lengthy prison sentences and judgements that exceed thousands of dollars. They need legal malpractice insurance to protect their clients from receiving a wrongful verdict and to protect their own reputations and careers. A law firm may take out a liability insurance policy that is valued based on the risks presented by the attorneys, their claim history and the types of cases they handle.


Accounting is a risky business as it involves hiring professionals to handle large bank accounts. Individuals and businesses that hire accountants are always afraid that the accountants will intentionally or accidentally make mistakes that cost them thousands of dollars. Accountants could also give the wrong financial advice and ruin a company’s finances. They need professional liability insurance to protect themselves from getting sued by their own clients.

Brokers and Consultants

Brokers help sellers to find buyers and make financial negotiations. Real estate brokers are liable for any bad sale that causes a client to lose thousands of dollars. Freight brokers are responsible for shipments that arrive lost or damaged.

Similarly, consultants are hired to give sound advice about a specific topic like business, marketing or law. A business owner may ask for advice about which ideas carry the least amount of risks. An IT consultant may give regular advice to the clients of an IT company. When the advice is incorrect and results in personal or financial damages, consultants cannot be sued if they’re properly insured.

Professional liability insurance is necessary to work in certain industries like healthcare or law. It’s recommended if you work in any position that requires you to give sound advice. You need professional liability insurance to maintain trust with clients, avoid facing any lawsuits and continue working in your position of authority.

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