If you have a habit of reading your insurance options properly, you may have come across these terms: Professional Liability Insurance, Errors and Omissions Insurance, and Malpractice Insurance. As a business owner, you surely have wondered- is professional liability the same as Error and Omissions? And is Error and Omission the same as Malpractice Insurance? If you are not sure what these terms mean, then here you will get all the information.
For beginners, did you know that all these terms are actually referring to the same policy? Let’s dive into the basics of the different terms for professional liability insurance so you can set your business up for tension-free growth and success.
What Is Professional Liability Insurance?
On a basic level, Professional Liability or professional indemnity insurance for doctors
covers you when you are charged for not doing your job properly. Treating a patient? A small mistake in your medications could cost your patient a lot of money and cause damages. Running in-home daycare? It would be very convenient to overlook a child’s speech impediment, which could later become a lawsuit for negligence. That’s where the professional liability insurance policy comes into play.
Why Are There So Many Terms for PL Insurance?
The reason there are different terms for Professional Liability insurance is that every industry and business is unique in itself. There are various types of professional mistakes that need to be covered by their industry-specific professional liability insurance. These different terms are utilized to describe the type of PL coverage you need, even though they can be used interchangeably in the actual world:
E&O Insurance is used to describe the policy covering tech, real estate, and accounting professionals.
Q: Is E&O Insurance the same as Professional Liability Insurance?
A: Yes, the label that is utilized for the policy by tech, real estate, and accounting professionals is the only difference between Professional Liability and Error and Omissions Insurance. Professional Liability Insurance is the term utilized to describe the policy covering engineers, consultants, and architects.
Q: Is Professional Liability Policy the same as Malpractice Insurance?
A: Malpractice insurance is a type of professional liability insurance, but PL insurance is not essentially Malpractice Insurance. Lawyers and doctors use the term Malpractice insurance for their industry-specific PL policy.
We are all human, and we can make mistakes. With P&L insurance or medical indemnity insurance for doctors, you can protect your business in advance. This type of insurance can help you be all that you can be in business, risk-free. This means that your PL insurance will be affordable, simple, and tailored to your industry and professional mistake that might occur.