An Example of Professional Liability Insurance in Action

How does professional liability insurance work? Imagine you’re an architect, and you design a bridge for a local municipality. A construction company builds the bridge according to your blueprints, and initially, it looks fine.

However, after a few months, parts of the bridge show signs of deterioration. Then, before the city can do anything, a section of the bridge collapses. Fortunately, no one is hurt, but a subsequent review of your blueprints shows that an error you made in your calculations caused the bridge to fail.

The city sues your firm for several expenses incurred due to your faulty design. These costs include commissioning a new design, paying to have the bridge rebuilt, etc. And this is a very simplified scenario, of course. Professional liability litigation frequently involves multiple parties, contractors and subcontractors, suits and countersuits, etc. Needless to say, the cost of an honest mistake can be very high.

The good news is that if you have a sufficient amount of professional liability insurance, your policy may protect you from the financial repercussions of this type of event. Simply report the claim, and our team will contact you and go to work on your behalf.

Even if no one ever sues you, simply knowing that biBERK has your back can lower your stress level and enable you to do your job confidently and without continually second-guessing your work.

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