Liability insurance

Things you need to remember

Who Needs Professional Liability Insurance Coverage?

June 2nd, 2014

As a professional, not being insured properly can be your biggest downfall. This is not surprising: Your respective field of work probably entails quite a few risks. And because we are all prone to errors and accidents—regardless of how much experience we have under our belt—we can never truly be safe from unintended consequences occurring as a result of an error, omission or professional negligence. For many people, such consequences come in the form of a lawsuit.

Let’s say that you are working as a contractor in the construction field and that you are not currently covered under a professional liability policy. You have been working in the construction field for over a decade, so it would be safe to say that you know your way around the job. The truth is that those years of experience, while they certainly help in general, can’t always prevent you from making a mistake. And this is exactly what happened today—except that mistake led to the injury of a person.

What do you do in that situation? Even worse—what do you do when said person decides to file a lawsuit against you by claiming a case of professional negligence? As we stated above, you are not insured. More likely than not, you also have a family to feed. How can you afford to pay the costs associated with a lawsuit? You simply can’t.

On the other hand, this would have been a completely different story had you been covered under a professional liability insurance for contractors.

Quite simply, if your job requires you do make decisions that could potentially damage a company, then you need to be covered under this policy. Similarly, if you work in a field where the possibility of a client suing you for damages caused by an error on your part exists, you need to be insured. Think: consultants, physicians, accountants, lawyers, engineers and many, many others. The more risks a profession entails, the faster you need this policy.

As a professional, it is your duty to prepare yourself for the worst-case scenario. While this is not something that any of us like to think about, such scenarios happen on a daily basis all over the world. They happen to people who are insured and they happen to people who aren’t. You make a conscious decision to fall into one of these two categories.

So which one will you choose?

P.s. Looking for really good Calgary insurance brokers?