Professional Liability Insurance Quiz

Professional Liability Insurance

Coverage Types

• Errors and Omissions Insurance: Protects against claims of negligence, mistakes, or failure to deliver services.
• Defense Costs: Covers legal expenses incurred in defending against claims, regardless of the outcome.
• Settlements and Damages: Provides coverage for any settlements awarded or damages assessed by court.
• Regulatory Defense: Covers legal fees associated with regulatory inquiries or disciplinary actions.
• Breach of Contract: Covers claims arising from the failure to fulfill contract obligations.

Policy Exclusions

• Intentional Wrongdoing: Claims arising from intentional acts or omissions are typically not covered.
• Criminal Activities: Illegal actions or criminal offenses are excluded.
• Prior Known Issues: Claims stemming from issues known before the policy's start date.
• Professional Services Not Covered: Work outside the scope of the defined professional services in the policy.
• Cyber Liability: Damage related to data breaches or ransomware may not be covered unless specifically included.

Industry-Specific Liabilities

• Healthcare Professionals: Malpractice claims due to negligence in patient care.
• Legal Professionals: Claims related to errors in legal advice, representation, or document preparation.
• Consultants: Liability for providing faulty advice that leads to financial loss for clients.
• Financial Advisors: Claims for mismanagement or negligence affecting client financial situations.
• Real Estate Agents: Exposure to liability arising from misrepresentation or failure to disclose property issues.

Professional Liability Insurance Coverage

• Errors and omissions insurance protects against claims of negligence, mistakes, or failure to meet service expectations.
• Policies cover legal defense costs, regardless of claim outcome.
• Settlements and damages resulting from claims are covered.
• Coverage extends to legal fees from regulatory inquiries or disciplinary actions.
• Policies can include protection against claims of breaching contracts.

Excluded from Professional Liability Insurance

• Intentional wrongdoing and criminal activities are not covered.
• Claims arising from issues known before policy inception are excluded.
• Services outside the policy's defined professional services are not covered.
• Cyber liability may be excluded unless specifically included as coverage.

Professional Liability by Industry

• Healthcare: Malpractice for negligence in patient care.
• Legal: Errors in advice, representation, or document preparation.
• Consultants: Faulty advice causing client financial losses.
• Financial Advisors: Mismanagement or negligence impacting client finances.
• Real Estate Agents: Misrepresentation or failure to disclose property defects.

Test your knowledge on professional liability insurance, including coverage types and policy exclusions. This quiz covers key concepts such as errors and omissions insurance, defense costs, and breach of contract. Understand the protections and limitations inherent in these policies.