What is the difference between professional indemnity insurance and professional liability insurance?

Professional indemnity insurance (PII) and professional liability insurance (PLI) are both important forms of insurance for professionals in Pennsylvania. PII protects professionals against claims related to negligence or errors made in their areas of expertise. This type of insurance may be required for certain industries, such as legal, accounting, and medical practitioners. It covers legal costs in cases where the insured is found to be at fault, or faces litigation for financial loss caused by an error or omission in their professional capacity. In contrast, PLI covers a professional’s legal costs from claims alleging damages due to a mistake or misconduct related to their work. This type of insurance may be required in certain industries, such as securities trading and financial services. It also covers the cost of defending against claims of negligence or malpractice, and damages associated with a professional breach of duty or misjudgment. Both PII and PLI are essential forms of insurance for professionals in Pennsylvania. Although these two types of insurance are similar, they are not interchangeable. PII covers professionals for errors or omissions related to their fields of expertise, while PLI is geared more towards defending against claims of misconduct or malpractice. Thus, it is important that professionals make sure they have the appropriate coverage for their particular job and industry.

Related FAQs

What type of evidence is needed to prove a claim of vicarious liability?
What is the difference between a claim of vicarious liability and a claim of professional negligence?
What is the difference between general and professional liability law?
Are there any limitations on the amount of damages that can be recovered in a professional negligence claim?
What is the difference between a breach of confidence and a breach of professional liability law?
What is the difference between a breach of contract and a breach of professional liability law?
What is the difference between professional indemnity insurance and professional liability insurance?
What is professional liability law?
What should a professional do if they believe they are being sued for professional negligence?
Is a professional liable for damages resulting from their own acts of professional negligence?

What is the difference between professional indemnity insurance and professional liability insurance?

Related FAQs

Related Blog Posts