What is the purpose of professional liability insurance?

Professional liability insurance is a form of insurance that protects professionals from being held financially responsible for the mistakes they make while providing services to others. The purpose of this insurance is to protect professionals from the potentially devastating financial repercussions that can be caused by any errors or omissions made in the course of their work. For example, a doctor might be sued for malpractice or a lawyer might be sued for a faulty contract. In either of these cases, the professional in question could be held liable for any costs associated with the mistake. Professional liability insurance helps protect the professional from having to cover these costs. In the state of Tennessee, it is not mandatory for professionals to have liability insurance, but it is highly recommended. Without it, any costs associated with a mistake or negligence on the part of the professional could be financially devastating. Professional liability insurance helps protect the professional’s personal financial assets. It also helps the professional by providing legal defense assistance in the event that they are sued. Overall, professional liability insurance provides important protection for professionals. It helps them avoid potential financial disaster, and it can provide peace of mind that their personal assets will be protected.

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What is the purpose of professional liability insurance?

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