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For people who make a business of dispensing professional advice and services, such as doctors, lawyers, and accountants, one of the most important types of commercial insurance is professional liability insurance. Also known as "errors and omissions insurance" or in some cases "malpractice insurance," it should be an integral part of any professional corporation's financial plan. In the sections below, Albers Insurance Agency, the most trusted seller of business, auto, home, and commercial insurance in Cincinnati, OH, answers some of the most frequently asked questions about professional liability coverage.

Professional Liability Insurance FAQs

What Is Professional Liability Insurance?

Commercial insuranceProfessional liability insurance (PLI) pays for all or part of the costs of defending a lawsuit should you be sued by a client for damages they sustained due to professional advice or services you provided. It provides peace of mind that, if you find yourself in court—whether you are at actually at fault or not—all or part of your defense costs will be paid for.

What Costs Do Professional Liability Insurance Cover?

Costs covered include lawyer fees, investigator fees, court costs, and judgment or settlement payments. Protection against these expenses is imperative, because legal defense costs can quickly skyrocket to amounts that a small business owner could never afford without insurance. Note that PLI does not cover defense of criminal prosecution, only civil actions.

What Is a Claims Made & Reported Policy?

Such a policy only covers claims that are made and reported during the period in which the policy is active. For instance, if an error or omission you committed took place during the coverage period, but you allowed the policy to lapse before a lawsuit was filed, coverage for the claim will be denied. Under a "claims made and reported" policy, only claims made during the coverage period will be paid.

Albers Insurance Agency is an experienced seller of all types of commercial insurance in Cincinnati, OH. Since 1949, they've been helping businesses design policies that fit their individual needs and budgets. Visit their Facebook page for contact information and business hours, or call (513) 891-3304 to discuss your options with a knowledgeable professional.

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