There are many professionals, outside of doctors, lawyers and accountants, which require the services of a misc professionals program to help them deal with any liability issues that could crop up during the performance of their duties.
For example, consultants, public relations firms, staffing agencies, travel agents, bookkeepers and real estate agents are just a few that could become the subject of litigation resulting in the services that they provide. Some professionals mistakenly think that their traditional CGL policy will cover their professional exposures, but this simply isn’t the case.
Unfortunately, without the proper miscellaneous professional liability (MPL) insurance coverage they may be left exposed to litigation for their errors, omissions, contract disputes, and other risks, as well as the costs to defend them from any such accusation.
Lawsuits are prevalent and costly
In an increasingly litigious society, it’s important to educate insureds about their potential professional liability exposure. A professional may be sued because of perceived problems with their work or advice, whether or not such claim has any merit. MPL insurance may seem expensive, but this cost is obviously minimal compared to what a business could potentially suffer in the event of a claim. Some businesses could even lose everything due to a high value loss, so it’s imperative that they seriously consider purchasing this policy.
In dealing with accusations, it usually isn’t advised to rely solely upon the application for a description of the professional services. The insurer should be told in detail what type of services your client provides. Typically carriers will rate based on the class of business along with professional services revenue and other factors. On any application, be sure that there is a breakdown of revenue by services provided, both professional and non-professional. There may be multiple types of professional services being performed.
Businesses that give advice as all, or part of their services, face a hidden liability risk, and misc professional liability insurance can fill major gaps in organizations’ risk transfer and management programs. But for those outside the traditional professions, the learning curve can be a steep and expensive one. This policy helps to avoid some of the common issues that can arise by not investing in a misc professionals program for their MPL coverage needs.