Professional Liability Insurance in New Hampshire

What is Professional Liability Insurance?

Professionals have knowledge and skills in a specific area, and they’re expected to use that expertise correctly when hired by clients. If a professional makes an error in their work, the client can sometimes seek compensation for any financial loss, damage or injury caused by the mistake. Professional liability insurance policies help New Hampshire professionals protect themselves against covered liability lawsuits that could arise from mistakes they make while working.

Professional liability policies often help pay legal fees, judgements and settlements associated with covered lawsuits and claims. In most cases, they’ll cover legal fees regardless of a professional's fault. (All coverages are subject to a policy’s terms, conditions and limits.)

Who in New Hampshire Needs a Professional Liability Policy?

Many professionals who work in New Hampshire should consider carrying a professional liability policy.

Professionals who are self-employed likely don’t have coverage for work-related errors from another policy. Thus, getting a professional liability policy can provide valuable protections in these situations.

Professionals who work for an employer might have professional liability coverage through their employer, but the coverage offered might not provide all the protection that these professionals need. First, employer-sponsored coverage usually doesn’t extend to pro bono work done for charities or consulting work done for other businesses. Second, an employer-sponsored policy might have lower limits than a professional would like.

For these two reasons, professionals who have employer-sponsored coverage might still want to purchase their own professional liability policy. They should at least review the protections offered by their employer’s policy with an agent who can help explain what the policy offers and point out any gaps in coverage.

What Kinds of Professional Liability Policies Are Available?

Professionals work in many different industries and therefore, are exposed to many different risks. In order to protect against the diverse risks that various professionals face, insurers offer several kinds of professional liability policies. Some of the more common ones are:

• Malpractice Policies, which are usually used to insure doctors and other medical professionals

• Directors and Officers Policies, which are usually used to insure high-level executives and board members of organizations

• Errors and Omissions Policies, which are usually used to insure people who offer advice to clients

Of these, errors and omissions (E&O) policies may be the most broadly used. Many insurers offer E&O policies for lawyers, paralegals, real estate agents, insurance agents, consultants and others.

These are just a few examples of the different types of professional liability policies available and who they’re normally used by. Insurers often also offer policies for landscapers, architects, interior designers and just about any other professional who offers advice.

What is the Difference Between a Claims Made and Occurrence Policy?

Professional liability policies may be either “claims made form” or “occurrence form” policies, although certain types of professional liability policies are typically only written as claims made form policies.

The essential difference between these two types of policies is how coverage for claims is determined. Claims made policies base whether a claim is covered on when the claim is filed. Occurrence policies base whether a claim is covered on when the incident happened. In both cases, other terms, conditions and exclusions can affect coverage.

How Can New Hampshire Professionals Get Professional Liability Insurance?

Selecting a professional liability insurance policy is an involved process that must take into account the risks that a specific professional faces.

For help finding a policy that’ll meet their unique needs, professionals in New Hampshire should contact an HPM Insurance agent who specializes in professional liability insurance. Our agents will know how to assess an individual professional’s risk exposure and then, compare different insurers’ offerings to find the most suitable policy.  HPM Insurance has convenient offices throughout the state, including in Amherst, Bedford, Bristol, Franconia and Laconia.