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Professional Liability Insurance in California

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If you are a professional in California, you may want to consider getting professional liability insurance. This type of insurance protects you from claims of negligence, errors, omissions, or malpractice in your work. Professional liability insurance can cover the costs of legal fees, settlements, or judgments if you are sued by a client or a third party for a mistake or oversight in your services.


Professional liability insurance is especially important for professionals who provide advice, guidance, or recommendations to their clients, such as lawyers, accountants, consultants, engineers, architects, doctors, dentists, therapists, and more. These professionals face a higher risk of being sued for errors or omissions that may cause financial loss or harm to their clients.


We are a Trusted Professional Liability Insurance Agency in California


At Western Insurance Marketing Corporation, we understand the unique risks and challenges that each profession faces. That's why we work with reputable and trusted insurance carriers to offer customized and affordable professional liability insurance solutions for our clients. 


We can help you compare different options and choose the one that suits your specific needs and preferences. Whether you are a sole practitioner or a large firm, we can help you secure the protection you need to operate with confidence and peace of mind. 


Contact us today to get a free quote or to learn more about our professional liability insurance services. We are here to serve you with professionalism and integrity.

Types of Professional Liability Insurance Policies in California


There are different types of professional liability insurance policies in California, depending on your profession and your needs. Some of the most common ones are:


Errors and Omissions (E&O) Insurance


E&O insurance is a type of professional liability insurance that protects you and your business from costly lawsuits if a client claims that you made a mistake, missed a deadline, breached a contract, or failed to meet a standard of care. It can cover your legal fees, court costs, settlements, and damages, even if you are not at fault. E&O insurance can give you peace of mind and confidence to do your best work without worrying about potential claims. 


Directors and Officers (D&O) Insurance


California Directors and Officers (D&O) Insurance is a type of liability insurance that protects the personal assets of directors and officers of corporations and non-profit organizations in California. It covers them against claims arising from their decisions and actions as leaders of their entities. D&O insurance can help pay for legal fees, settlements, judgments, fines, and penalties that they may face in lawsuits brought by shareholders, employees, customers, regulators, creditors, or other parties.


Medical Malpractice Insurance


California Medical Malpractice Insurance is a type of insurance that protects doctors and other health care professionals from lawsuits related to their medical services. It covers the legal costs and damages that may arise from claims of negligence, errors, or omissions in the diagnosis, treatment, or care of patients. California Medical Malpractice Insurance is essential for anyone who practices medicine in the state, as it can help them avoid financial ruin and maintain their reputation in case of a malpractice lawsuit.


Legal Malpractice Insurance


This is a type of insurance that protects lawyers from claims of negligence, errors, or omissions in their professional services. It covers the legal fees and damages that may arise from a lawsuit filed by a client or a third party. California Legal Malpractice Insurance is essential for any lawyer who practices in the state of California, as it can help them avoid financial ruin and reputational damage in case of a malpractice claim.


Cyber Liability Insurance


Cyber liability insurance is a type of coverage that protects your business from the risks of cyberattacks and data breaches. It can help you cover the costs of restoring your systems, notifying your customers, and defending yourself from lawsuits. Cyber liability insurance is essential for any business that uses or stores digital data, such as customer information, financial records, or intellectual property.


These are just some examples of professional liability insurance policies in California. You may want to consult with an insurance agent or broker to find out which policy is best suited for your profession and your specific risks.

Common Exclusions


Here are some common exclusions in California professional liability insurance that you should be aware of:


  • Prior knowledge: If you knew or should have known about a potential claim before the policy period, your insurer may deny coverage for that claim.
  • Fraud or dishonesty: If you intentionally or knowingly committed fraud or dishonesty in your professional services, your insurer may not cover you for any resulting damages.
  • Bodily injury or property damage: Professional liability insurance typically covers only financial losses caused by your professional errors or omissions. If your work causes bodily injury or property damage to a third party, you may need a separate general liability policy to cover those claims.
  • Contractual liability: If you assume liability for another party's actions or obligations under the contract, your insurer may not cover you for any claims arising from that contract. However, some policies may provide coverage for contractual liability if you would have been liable even without the contract.
  • Regulatory fines or penalties: Professional liability insurance usually does not cover any fines or penalties imposed by a regulatory agency for violating laws or regulations related to your profession.
  • Punitive damages: Punitive damages are awarded to punish or deter wrongful conduct. In California, punitive damages are generally not covered by professional liability insurance, unless they are awarded for defamation or invasion of privacy.


These are some of the common exclusions in California professional liability insurance, but they may vary depending on your specific policy and profession. It is important to read your policy carefully and understand what is covered and what is not. If you have any questions or concerns about your professional liability insurance, you should consult with a licensed insurance agent or broker who can help you find the best coverage for your needs.

How Much Does Professional Liability Insurance Cost in California


Here is a list of some of the most important factors that influence the cost of professional liability insurance in California:


  • Your profession: Different professions have different levels of risk and exposure to lawsuits. For example, doctors, lawyers, architects, and engineers may face higher premiums than consultants, accountants, or therapists.
  • Your industry: The industry you work in may also affect the cost of your professional liability insurance. Some industries are more prone to litigation than others, such as health care, construction, technology, and finance.
  • Your location: The cost of living and the legal environment in your state may also impact the price of your professional liability insurance. California is known for having high costs of living and high rates of litigation, which may result in higher premiums than other states.
  • Your coverage limits: The amount of coverage you choose for your professional liability insurance will also affect the cost of your policy. Higher coverage limits mean higher payouts in case of a claim, but also higher premiums. You should choose a coverage limit that matches your potential exposure and your budget.
  • Your deductible: The deductible is the amount of money you have to pay out of pocket before your professional liability insurance kicks in. A higher deductible means lower premiums, but also more financial responsibility in case of a claim. You should choose a deductible that you can afford to pay in case of an emergency.
  • Your claims history: The number and severity of claims you have faced in the past may also influence the cost of your professional liability insurance. If you have a history of frequent or large claims, you may be considered a higher risk and pay higher premiums than someone with a clean record.
  • Your risk management practices: The way you manage your risks and prevent potential claims may also affect the price of your professional liability insurance. If you have good risk management practices, such as contracts, policies, procedures, training, and documentation, you may qualify for discounts or lower rates on your policy.


Cost per Plan


  • E&O coverage costs $500 to $1,000 per employee, per year for small businesses
  • D&O insurance costs $5,000 to $10,000 annually for $1 million in coverage
  • Malpractice insurance is a type of professional liability insurance that protects medical professionals against claims of negligence or harm
  • Malpractice insurance costs $4000k to $12000 per year on average
  • Attorney liability insurance costs $1,200 to $2,500 per year on average for minimal limits
  • Cyber liability insurance costs $140 per month or $1,675 per year 


Each insurer may have different criteria and methods for calculating premiums, so it is important to compare quotes from different providers before choosing a policy that suits your needs and budget.

Get The Best Rates on California Professional Liability Insurance


Whether you are a lawyer, accountant, engineer, or any other professional who provides services to clients, you need to protect yourself from potential lawsuits. 



Don't risk your reputation and livelihood without adequate insurance. Contact us today and get a free quote.

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