Professional liability concerns financial losses as a result of misconduct. Financial losses refer to a negative financial impact on your employer or client for which you are liable.
Corporate liability insurance exclusively provides coverage for damages to people or business matters. Using professional liability insurance, you are covered for any financial loss caused by mistake, misconduct, negligence, carelessness, misinformation, software errors, or faulty advice. Financial loss includes loss of turnover, delay costs, and reputational damages with your relations.
You can limit your liability by applying terms of delivery. However, it is possible that your employer or client exclusively works with their terms and conditions, which may change or alter your liability.
Professional liability insurance can be utilized by professionals that provide advice and are at risk of being held liable for any misconduct. Examples of professions and sectors in which professional liability insurance is important are:
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