Professional Liability Insurance

The 1099 only represents that the Attorney is working on a contract basis (self Employed) rather than as an employee.

If the attorney is in fact a self employed independent contractor then this likely means that no coverage is afforded by the employer. If this is the case, then it would be a good idea for the Attorney to get some Malpractice or Professional Liability Insurance so there will be coverage in the event of a malpractice suit. Otherwise the attorney will be out of pocket for any related expenses in the event of a claim.

The 1099 itself has no bearing on the attorneys need for Malpractice or professional liability coverage. It only indicates that he or she is a sel employed independent contractor.

Professional Liability Insurance provides protection from liabilities that could arise from the practice of your profession.

As a professional rendering a service, that person, is susceptible to be taken to court if the client is dissatisfied with the services rendered.

A person could be taken to court for breach of contract, negligence or performance issues with or without proof of the accusation.

Professional Liability Insurance will (within Policy coverage Limits) help cover the cost of legal defense attorney fees as well as the cost of an eventual judgement rendered should the insured be found liable in court.

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an exception

Yes, it's a part of Professional Liability.

On average for the individual about 2000 to 3500 U,S. dollars per year.

The terms professional indemnity (PI) and professional/public liability (PL) differ in that PI covers for errors, omissions and neglect regarding advice, designs or plans that you put forward that lead to a financial loss or injury to your client. PL covers the public against any injury that is caused during the process of your day. For example a builder that accidental drops a brick and it breaks a member of the public's foot - PL kicks in and pays all associated damages.

Professional liability insurance is sometimes referred to as "malpractice" insurance. In general, it covers negligent acts or omissions by persons who hold licenses to engage in certain types of occupations, sich as physicians, attorneys. accountants, etc.

It is not unlike liability insurance in general, in that it is intended to provide a source of recovery for a person who sustained financial loss due to the fault of the insured. However, the negligence in the case of this kind of insurance has to come within the ambit of the professional services.

Again, like other liability insurance, in addition to providing a source of recovery to the harmed, or allegedly harmed party, the insurance affords a defence to the insured. This means that the insurer hires an attorney to defend the insured, pays the attorney, pays attending court costs, and related expenses. There may be limits and conditions to the amount payable, but these are the basics.

Professional Liability Insurance (also known as Errors and Omissions Insurance) insures businesses with the defense they need if a dissatisfied client makes a claim against it.

It is not "required", however, one will be personally liable without an insurer/insurance company covering the costs associated with losses and malpractice actions. The State Bar of Michigan asks each lawyer whether or not s/he has malpractice insurance annually at the time of renewing membership. Michigan has a mandatory bar association. I believe there is a state fund available for malpractice issues. Hope this helps, MI Attorney

This depends on several factors, including where you're located & your claim history, who the insurance company is, their coverage form and their overall experience with your type of operations, whether you currently have coverage, your training, your specific operations, coverage limits, deductible and more. Your insurance agent can give you a quote specific to your situation.

Neither, This is generally addressed in the terms of your employment. Sometimes the company will provide the coverage while other times The employee will.

However, Most often, when working in the employ of another the employer will carry the necessary coverage.

The timely filing limit for Aetna is now only 90 days. However, you can appeal the decision if you have proof of timely filing.

There are two basic policy forms offered by malpractice insurers, claims made and occurrence. Occurrence coverage is the most desirable form of coverage, but it is not available in all states. An occurrence policy is complete when you purchase it and on cancellation continues to provide coverage for future claims based on conduct that took place during that policy term. The limits that are available to pay a claim are the limits that were in place during that policy term that the service was rendered. Premiums for this product are level except to the extent that a company may increase or decrease premiums over time. Claims made policies provide coverage only so long as the insured continues to pay premiums for the initial policy and any subsequent renewals. If one is insured by a claims made policy for five years and stops paying premiums, coverage ceases for any cases that the company did not accept during the policy term. To lock in coverage forever under this policy form, an insured must purchase an Extended Reporting Endorsement (called a "tail"). This endorsement allows an insured to continue to report claims after the policy is cancelled. Tail premiums usually range from 100% to 500% of the mature premium (see below) and the premium is usually due as a single payment shortly after cancellation of a policy. However, one can move between claims made insurers without purchasing a tail. If a professional desires to change insurance companies, often the new insurer will take over the predecessor insurance company's responsibilities by writing its policy retroactively over the previous insurer. It picks up the retroactive date, the first date of coverage, offered by the previous insurer and charges a premium based on the number of previous years of coverage needed. Claims made policies have premiums that increase annually usually over a period of five years; the fifth-year premium is referred to as the "mature premium." When writing retroactive coverage, the new insurer's premium usually does not exceed its mature premium for this specialty. Many insurers offer a free tail if an insured dies, is totally disabled or retires from practice after five years of coverage with that company at a minimum age of 55. If this feature is not included in your policy, you ultimately need to purchase a tail to maintain indefinite coverage after you stop working. Moving from one claims made insurer to another may be difficult for health care professionals relocating to a new state because many malpractice insurers are regional and do not want to assume retroactive coverage out of its geographic area. As with any overview, this insurance information is general and intended to help you make informed decisions. The actual policies available in your state may contain features not discussed above. An insurance policy is a contract between you and an insurance company. You should read and understand any policy that you purchase. If you have any questions, have the company or insurance broker or agent take as much time as you need to explain policy terms to your satisfaction.

In order to provide themselves with additional (supplemental) coverage in case the employers insurance policy is insufficient.

When the assistant wants an additional layer of coverage beyond the limits provided by the employers policy.

It really depends on what type of consulting your doing.

Some Considerations

1. If others in your profession are carrying Professional Insurance coverage it could indicate that your peers think it's a good Idea.

2. Some professionals may find that they get more work when they can tell the client that they have Professional Liability Coverage. Being insured does tend to lend credibility to the professional when bidding on a job.

Professional liability insurance protects the architect or engineer against claims for damages caused by the firm's negligent acts, errors or omissions in the performance of his or her profession. The policy covers claims for bodily injury, property damage or economic losses. The policy provides a defense for the design firm against allegations of negligence, and it will pay for any damages that might be awarded as well.

No way to answer this ratings are dependent on too many factors contact a few agents and request quotes.

Hi Deborah here, I am insurance broker with the CRIS designation specializing in contractors needs. I have a client who has had that same situation, here is the advise: The CG2139redefines the ‘Insured Contract’ to remove it’s f. point (page 13 of 16 on ISO CG0001 1001 .. is the version I have here handy.. that states an ‘Insured Contract’ is points a through f. ) Here, the f. point is basically a contract a sub would sign to work for a GC & it would include a hold harmless/indemnity agreement for tort and operations coverage. This hold harmless agreement would be worthless unless the sub is independently wealthy as his insurance company would not defend or indemnify or anything. So it can be bad for subcontractors to have this endorsement but worse for the GC’s if they were to enter into a normal business contract w/hold harmless et al with a sub who has the cg2139. Subcontractors with this endorsement need to work for GC’s that simply want to be named as additional insured on the subs’ policy. If there is no contract and the GC is named additional insured on the subs’ policy, that should be sufficient for the GC to be covered for operations and tort of the sub by the subs insurance company. If I have a client with the cg2139 in a GL quote, I just make sure to ask them if they are going to be signing a contract with a GC/developer et al and/or to let me know if they plan on it at any time in the future. If they say they won't enter into any contracts with a hold harmlessthen the cg2139 is irrelevant and being on the policy/quote is immaterial. I think insurance company’s issue this endorsement to limit the scope of work a contractor can do.They want to be sure it knows the entities it would be indemnifying ie AI endt cg2010 or equivalent. They don’t want their ‘little’ contractors getting out there and playing with the big kids without permission. ~ dmc 6-12-07 previously suggested by someone else: I suggest you to go the IIABA website. If you are a member, you can access the Virtual University, then go to "Ask an Expert" and ask your question. This is a great resource.

This depends on a number of things. It's hard to say without knowing what kind of work you are sub-contracting.

First determine if you need Professional Liability coverage Or Commercial Liability Coverage. They are very different products.

Most General Contractors do require the subs to carry insurance. Otherwise the General Contractor will have to pay much more for insurance coverage that effectively covers his or her own activities as well as those of the sub-contractors.

If the General Contractor you are doing work for already has coverage for his subs under their insurance (usually not).

What is the nature of your agreement with the General Contractor.

Some Contractors insurance policies cover subs while others do not.

The retroactive date sets how long before the inception of the policy that you are covered for negligent acts, error or omissions that you report during that policy. A retroactive date can match the policy inception date so that no prior acts are covered.

From the date of the retro period would be the continuous period before the retro date during which the coverage is applicable

Hopefully the deceased person kept records or told someone about any policies that they may have had. Otherwise there is no national database to provide that answer for you. You might look at their bank statements to see if any payments were made to an insurance company.