Professional Liability Insurance

No, employers’ liability is not the same as Professional Liability insurance.

Employers’ liability protects businesses against workplace injury or illness claims not covered by Workers’ Compensation insurance. It may be included as part of your Workers’ Compensation policy (except for policies purchased from a monopolistic state fund) or added to your policy as an endorsement.

Employer’s liability typically covers:

– Lawsuits by third parties distantly involved in the accident
– Lawsuits brought by the family of an employee who is deceased or disabled
– Non-employees who suffer physical damage due to the employee’s injury
– Dual-capacity lawsuits where you are sued both as the employer and as something else (i.e., a product manufacturer, service provider, landlord, etc.)

Malpractice insurance is a type of Professional Liability insurance designed specifically for people working in the medical field. The potential for mistake is higher for these occupations and the consequences that follow them could be much greater for their patients.

Examples of occupations that may consider malpractice insurance include:
– Doctors
– Surgeons
– Dentists
– Nurse practitioners
– Massage therapists

General Liability is a common form of insurance coverage that many small businesses consider. It differs from Professional Liability insurance in that it covers bodily injury and property damage claims made by third parties.

You might consider General Liability insurance if you:
– Regularly meet with third parties (clients, vendors, delivery people, etc.) in your office or workplace
– Regularly meet with clients or vendors in their homes or places of business, or on third-party worksites
– Handle your client’s property or personal belongings
– Have employees who do any of the above

Professional Liability insurance is the same as Errors and Omissions (E&O) insurance. They provide the same forms of protection against mistakes in your work, negligence, breaches of contract, and other common liabilities in this category.
You may be more likely to see a policy listed as E&O insurance when it is being sold to certain industries, such as real estate, tech, and accounting.

Directors and officers’ insurance is a type of Professional Liability insurance designed specifically for the higher ups at a company. This includes directors, officers, executives, and other members of upper management.

While directors and officers’ insurance is similar to Professional Liability insurance, the coverage it provides is targeted to the unique risks faced by a company’s primary decision makers. This includes:
– Negligence
– Poor financial management
– Errors
– Wrongful acts and conflicts of interest (excluding crimes or illegal acts)
 
Like Professional Liability, directors and officers’ insurance protects against claims that typically come from outside the company, such as from a dissatisfied client or investor.

No, employment practices liability is not the same as Professional Liability insurance.

Employment practices liability protects businesses against claims and lawsuits brought by employees who allege that the company has violated their legal rights. Common reasons for an employment practices lawsuit include:
– Wrongful termination
– Failure to promote or hire
– Discrimination
– Sexual and other forms of harassment

Yes, Professional Liability insurance is typically a tax-deductible expense for small businesses. According to the IRS, you can deduct many insurance premiums that are considered ordinary and necessary costs. This includes Professional Liability, General Liability, and Workers’ Compensation insurance, as well as many of the coverages that can be included in a Business Owner’s Policy (BOP).
A tax professional can help you determine which insurance premiums you can deduct from your tax filing.