Professional Liability Insurance in Texas

What is professional liability insurance?

Providing professional services comes with responsibility, and responsibilities are often accompanied by potential risks. In particular, Texas professionals can be liable if they make a major error when working with clients. Professional liability insurance can give valuable protection should you ever accidentally make an error.

Professional liability insurance is specialized liability insurance that protects against various errors professionals might make. Policies may cover errors, omissions, negligence and other mistakes.

Who in Texas needs professional liability coverage?

Many professionals in Texas can benefit from having professional liability insurance. Generally, those who offer advice or specialized services should consider having a policy. Some examples include:

• Medical Professionals: Physicians, physician assistants, nurses, dentists, optometrists, physical therapists, etc.
• Legal Professionals: Attorneys, paralegals, legal consultants, mediators, custodians, trustees, etc.
• Financial Professionals: Accountants, tax preparers, auditors, financial advisors and planners, wealth managers, etc.
• Real Estate Professionals:Real estate agents, brokers, property managers, etc.
• Contractors and Consultants: IT consultants, management consultants, architects, engineers, etc.

In some cases, even professionals working in trades should have this type of insurance. Errors and omissions insurance at least might help cover any errant advice that electricians, HVAC techs, plumbers, masons or other tradespeople mistakenly tell customers.

What types of professional liability policies are available?

There’s a range of professional liability policies, with policies usually tailored to the specific needs of a given profession. Some of the most common professional liability policies are:

Who needs to have medical malpractice insurance?

Medical malpractice insurance is generally for those in the healthcare sector who provide patient care. It typically offers protection against issues such as misdiagnosis, incorrect treatment, surgical mistakes, and other errors. 

Employee healthcare providers frequently receive coverage from their employers, which likely carry a policy for the entire practice or organization. Self-employed medical professionals normally need to secure their own coverage. Coverage probably isn’t necessary for administrators working at healthcare organizations.

Who needs legal malpractice insurance?

Legal malpractice insurance is generally for those working in the legal field. Personal injury, legal defense, family law, labor law, immigration, tax law, real estate law and other attorneys normally need this insurance. So too do most mid-level legal professionals who might mediate, review documents, prepare documents or do other work in the field.

Again, legal professionals who are employees probably have liability coverage through the firm or practice that employs them. Those that have solo practices probably need their own policy.

Who should have E&O insurance?

Errors and Omissions (E&O) insurance is used in a broader array of industries, including everything from the trades to the financial sector. This tends to be the best policy option when advice is given within a field, and that’s all professional liability coverage is needed for.

Who should have D&O insurance?

Directors and Officers (D&O) insurance is primarily for those who hold executive positions, serve on the board, or otherwise lead an organization. This coverage may protect leaders from personal financial losses if they are sued for decisions made while serving the organization.

Who typically pays for professional liability coverage?

In traditional employment situations, the employer often pays for professional liability coverage. The employer’s coverage normally extends to all professionals who are employed, but only while the work is being done for the employer. Side work and pro bono work are unlikely to be covered by an employer’s policy.