By definition, niche professional liability insurance policies cover separate issues based on the clients’ niches. For example, attorneys face different types of liability than physicians. Because of the wide differences in niches, it is impractical to list every detail of coverage here, but there are two basic types of coverage in policies:
- Errors of Commission – All people are subject to make mistakes, regardless of how important their professions are. Errors of commission could be classified as anything accidentally done that is beneath the professional standard. Even good consultants sometimes give bad advice, and accountants sometimes make minor math errors. These mistakes can be costly, often resulting in litigation.
- Errors of Omission – As with errors of commission, these errors are the result of human frailty. Busy real estate agents may leave out an item of importance, and physicians may underestimate the value of a specific test. Businesses offering professional services have protocol and systems in place to protect themselves and their clients against omissions, but sometimes mistakes slip through because people are not perfect.
Niche professional liability insurance covers professionals from both real and perceived errors. Even a hypothetically perfect professional should strongly consider purchasing a policy, because not all litigation follows legitimate errors. Some clients attempt lawsuits for false accusations and gross misinterpretations. Even ungrounded lawsuits can be expensive and time consuming for professionals who do not have adequate coverage. If even a perfect professional benefits from niche professional liability insurance, coverage is desirable for all who offer professional services.