Do I Need Insurance To Cover Professional Liability in Michigan?

Depending on the field that you work in you may have heard the term professional liability insurance or you may have simply heard the term Errors & Omissions (E&O). In the medical field in particular this type of insurance is also known as medical malpractice coverage. They are all basically the same thing and provide coverage for professional liability in Michigan and across the United States.

What Does It Cover?

Insurance that covers professional liability in Michigan protects a business from claims that have to do with negligence, misrepresentation, professional errors that cause injury or damage or for possibly providing misleading information or violating good faith. This could include making promises that a product or service will provide results that the customer fails to realize. Other types of claims that cause property or personal damages or injury would fall under general liability insurance.

Generally any type of error or omission that the business does that results in a customer losing any type money or resulting in some type of harm could be covered by professional liability. For example, if a client went to an attorney and asked a legal question and that attorney provided advice that was incorrect, the client could then file a lawsuit against the attorney. If he or she had professional liability insurance in Michigan that insurance would handle the claim.

The same would be true for anyone that provides any type of advice or information to clients. This can include advice by tradespersons, beauty salon owners, counselors, consultants or those selling their services as experts in any area. It also comes into effect if you failed to use accepted industry standards in your services or product that cost the customer in some way.

Is It Costly?

The cost of liability insurance varies based on your professional category and the individual risks and prior cases in your field. For most people it is very low cost and you have the option to choose your limits from a relatively low limit to a high limit in those professions that are at highest risk.

Getting professional liability in Michigan is an important consideration for virtually all business owners, sole proprietors and entrepreneurs. This is a low cost type of insurance that will be important if there is ever a lawsuit brought against you for errors and omissions or professional liability issues.

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