Insurance needs vary, even among professionals, and it’s important to get the right coverage that fits individual professions. Certain people, and we’re talking about those clients who charge a fee for the services they provide, can benefit from the acquisition of miscellaneous professional liability (MPL) insurance.
This specific type of coverage, which offers protection for the errors and omissions committed by professional service providers, is a safeguard against claims of neglect or wrongdoing. It’s vital that you help your insureds differentiate between this policy and general liability (GL) policies, since MPL insurance covers both the professional services they render, as well as the actual business entity itself.
The list of businesses in need of coverage is extensive
As an agent you understand that everyone from travel agents to architects needs to have miscellaneous professional liability coverage. But you may need to convince certain clients of the benefits associated with having this policy. For instance, those in the dog grooming business may have a hard time believing they are at risk by not purchasing coverage, but nothing could be further from the truth.
There are more than 350 hazard classes currently offered under the MPL insurance umbrella. As any agent knows, it helps to focus marketing and sales efforts on certain professions during certain times of the year. That is why it’s suggested that you segment your activities monthly by specific classes. For example, accountants and tax preparers are best approached in March in time for tax season.
The best approach is to explain to them that what they are able to deliver, in terms of their services, and what their clients’ may have come to expect, may not always be in line with one another. If expectations are extremely high, and they fail to meet those expectations, this is where the issues generally begin.
The situation then gets exacerbated when a real mistake or error occurs, and if their customer feels, or can prove that it resulted in some type of loss, financial or otherwise, your client could become entangled in a lawsuit.
The exposures exist, and the risks are all too real. Speak to your clients about MPL insurance to protect them and their business from issues stemming from the professional advice and services they provide.