Professional Liability Insurance in a Down Economy
Professional liability insurance covers liability for damages arising from the rendering of or failure to render professional services. With claims increasing during this economic downturn, the need for professional liability insurance coverage for Addiction Counselors is even more great. Protect yourself and your livelihood from claims that may not be covered by commercial general liability coverage.
Professional liability insurance, also referred to as Professional Indemnity Insurance or Malpractice Insurance, protects professionals against negligence claims made by their patients or clients. Addiction Treatment Professionals commonly purchase this type of liability insurance as do architects, home inspectors, lawyers, physicians, real estate brokers and accountants – among others. Specific professional liability insurance carries different names depending on the profession. For example, professional liability insurance for Addiction Counselors may be called medical malpractice insurance, while real estate brokers fall under errors and omissions insurance coverage. Because claims become more frequent in a down economy, protect yourself with professional liability insurance.
Professional Liability Considerations
The need for professional liability coverage developed due to typical general liability insurance policies only responding to bodily injury, property damage, personal injury or an advertising injury claim. Because Addiction Counselors can cause claims without bodily injury, property damage, personal injury or an advertising injury claim, additional coverage is needed to fill this gap.
Common claims made on these policies include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if an Addiction Counselor were sued for rendering bad advice, it would not cause bodily injury, property damage or advertising injuries. Because of this, the general liability policy would not be triggered. But because the advice given by the Addiction Counselor could directly cause emotional hardship for the patient, the professional liability coverage would be triggered.
The Professional Liability Insurance Program provided by The Van Wagner Group exclusively for NAADAC Members covers Addiction Counselors and Professionals with up to $3,000,000 in aggregate limits for both Professional liability and General Liability. The cost for this coverage is less than $1/day in most cases.