How It Works

Personal liability insurance is available as well, and it covers the cost of defense during a civil case. Criminal cases are excluded from this coverage. Liability coverage is mandatory in some professions. For instance, medical and legal professionals should have malpractice insurance. Auto and homeowners insurance also covers liability, but it doesn’t apply in professional situations. Professional liability isn’t included with your homeowners or auto insurance coverage.

Please note that liability coverage doesn’t include coverage in criminal cases. An insurer can also choose to exclude some civil cases. The insurer has the right to do this unless the policy specifically states that all civil cases are covered. In most cases, liability will cover any civil issues dealing with negligence, bad advice, misrepresentation, violation of good faith and fair dealing.

Professions that provide a service are at high-risk for liability claims. That’s why any business or individual who provides a service should have professional liability. Some examples include hospitals, restaurants, law firms, hospitals, and manufacturers.