Professional liability insurance is a “must-have” for most professionals. It goes by different names. It is called malpractice insurance for those in the healthcare and legal professions. It is called errors and omissions (E&O) insurance in the financial services sector.
Just about anyone who needs to maintain a professional license under state law, needs to have professional liability insurance. Even if you have professional liability insurance, it may not be enough, on its own, to protect you from the risks. That is why also having umbrella insurance is a wise choice.
Umbrella Insurance Benefits
Umbrella insurance enhances the coverage of underlying professional liability insurance and perhaps other insurance policies as well.
Here is the way umbrella insurance works. If there is a claim that exceeds the limit of an underlying policy, such as the limit of a professional liability insurance policy, the umbrella insurance pays the excessive portion of the claim. After the primary insurance limit is exhausted, umbrella insurance pays covered claims up to the limit of the umbrella policy.
For example, if a doctor has professional liability (malpractice) insurance that has a $1 million limit and there is a settled, covered claim for $3 million. The first portion of $1 million is paid on the claim from the professional liability policy and the remaining balance of $2 million is paid under the umbrella insurance policy.
Another benefit is that umbrella insurance may protect the insured person from things that are not covered in other insurance policies. For example, these might be a defamation lawsuit or a case regarding sexual harassment in the workplace. Umbrella insurance may also cover the legal expenses incurred in fighting a lawsuit. Ask your agent to be sure about specific coverage.
Umbrella insurance can be tailored to fit particular needs. Consult with your agent at Bob Korvas Agency Inc. serving Niles, IL and the surrounding area to discuss your circumstances.
Professional liability insurance and umbrella insurance are usually used together, to provide adequate protection from more risks. To get a quote for umbrella insurance, talk to your agent at Bob Korvas Agency Inc. in Niles, IL by calling 847-470-8830.