Professional Liability Insurance
KEY TAKEAWAYS
Professional liability insurance is used in businesses to protect against claims of negligence.
Professionals such as coaches and hypnotherapists use this insurance to protect themselves against client claims of negligence or malpractice.
The AHCA recommends that you consult a legal representative as you are considering the policy and coverage that best suits your business offerings and profession.
What Is Professional Liability Insurance?
Professional liability insurance (PLI) is insurance that protects professionals such as coaches, hypnotists, hypnotherapists, counselors, lawyers, and physicians against negligence and other claims initiated by their clients.
You may or may not be required to hold professional liability insurance depending on the laws surrounding your profession in your state or country of residence. Either way, the American Hypnosis & Coaching Academy highly recommends you hold it.
Professionals who have expertise in a specific area may be required to hold this type of insurance because general liability insurance policies do not offer protection against claims arising out of business or professional practices such as negligence, malpractice, or misrepresentation.
How Professional Liability Insurance Works
Depending on the profession, professional liability insurance may have different names, such as medical malpractice insurance for the medical profession, and errors & omissions insurance for real estate agents. Professional liability insurance is a specialty coverage that is not provided under homeowners' endorsements, in-home business policies, or business-owners' policies. It only covers claims made during the policy period.
Professional Liability Policy info
Some professional liability policies are different than others. They can vary dramatically in the coverage amounts and what exactly they will protect you against. Wordings with major legal differences can be confusing.