Professional Liability Matters

How do professional liability matters affect insurance companies?

Professional liability matters encompass a broad spectrum of potential risks for insurance companies. These matters involve claims of negligence or errors and omissions made by professionals in various fields, including real estate agents, insurance agents, attorneys, physicians, and directors and officers of companies. When these professionals fail to meet the expected standard of care or make mistakes in their professional duties, they may face lawsuits from clients or third parties seeking damages.

For insurance companies, the implications of professional liability claims are significant. They often provide coverage for professionals against such claims through errors and omissions (E&O) insurance policies. As a result, insurance companies must assess the risks associated with insuring professionals in different industries and ensure that their policies adequately cover potential liabilities.

Professional liability matters pose significant challenges for insurance companies, requiring them to carefully manage risks associated with providing coverage to professionals in various fields while ensuring compliance with legal and regulatory requirements.

Need help regarding professional liability matters? Schedule your consultation today with a top insurance law attorney.

In Florida, which laws and regulations apply to professional liability matters?

In Florida, laws and regulations regarding professional liability insurance are industry-specific and often governed by state licensing boards. For instance, the Florida Board of Professional Engineers requires professional engineers to maintain E&O insurance coverage as a condition of licensure.

Another example is the Florida Department of Financial Services, which oversees insurance agents and agencies in the state. Insurance agents are required to maintain a specific level of E&O insurance coverage as a condition of licensure.

What are common issues regarding professional liability that lead to litigation?

The following issues are among the most common in actions regarding professional liability matters:

• Failure to Meet Standard of Care: When professionals, such as real estate agents or attorneys, fail to meet the expected standard of care in their respective fields, clients may sue them for negligence. For example, if a real estate agent fails to disclose material defects in a property, resulting in financial losses for the buyer, a lawsuit may ensue.
• Misrepresentation or Fraud: Misrepresentation or fraudulent acts by professionals, such as insurance agents or directors and officers, can lead to litigation. For instance, if an insurance agent provides false information about coverage or terms of a policy, the insured party may file a lawsuit for damages.
• Breach of Fiduciary Duty: Directors and officers owe fiduciary duties to their companies and shareholders. Breaches of these duties, such as conflicts of interest or self-dealing, can result in litigation against the officers and directors for financial losses suffered by the company or shareholders.
• Failure to Obtain Informed Consent: In professions like medicine, physicians must obtain informed consent from patients before performing certain procedures or treatments. Failure to do so can lead to allegations of medical malpractice and subsequent litigation.
• Violation of Regulations or Laws: Professionals must comply with applicable laws and regulations governing their industries. Violations of these laws, such as antitrust violations by attorneys or physicians practicing without proper licensure, can result in legal actions against the professionals.

We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What steps should businesses take to minimize the risk of litigation over professional liability matters?

• Comprehensive Documentation: Maintain detailed records of all interactions, transactions, and decisions to provide evidence of due diligence and compliance with professional standards.
• Continuing Education and Training: Ensure that professionals stay updated on industry regulations, best practices, and ethical standards through regular training programs and professional development initiatives.
• Clear Communication: Establish transparent communication channels with clients or stakeholders to manage expectations, disclose risks, and avoid misunderstandings that could lead to litigation.
• Risk Management Protocols: Develop and implement risk management protocols tailored to the specific needs and challenges of each professional sector, including procedures for identifying, assessing, and mitigating potential risks.
• Professional Liability Insurance: Obtain adequate errors and omissions (E&O) insurance coverage to protect against claims of negligence, errors, or omissions in professional services.
• Legal Compliance: Ensure strict adherence to all relevant laws, regulations, and industry standards governing professional conduct, ethics, and responsibilities.

Frequently Asked Questions

What is the difference between professional liability insurance and general liability insurance?

Professional liability insurance covers claims arising from professional services’ errors or negligence, while general liability insurance protects against bodily injury, property damage, or personal injury claims.

Are errors and omissions claims covered under a standard business insurance policy?

No, errors and omissions (E&O) claims typically require a separate professional liability insurance policy tailored to the specific risks and needs of professionals in various industries.

What should I do if I receive a professional liability claim against my business?

Promptly notify your insurance provider, gather relevant documentation, and consult with legal counsel to develop a strategic response plan and protect your rights and interests.

Have more questions about a professional liability-related situation?

Crucially, this overview of professional liability does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.