
Professional liability insurance is a must-have for Texas professionals, especially those in high-risk fields like healthcare and finance. Texas has its own unique requirements and laws that affect professional liability insurance.
In Texas, professional liability insurance is also known as errors and omissions insurance, or E&O insurance. This type of insurance protects professionals from claims of negligence or errors that can damage their reputation and bottom line.
The Texas Department of Insurance requires certain professionals to carry professional liability insurance, such as lawyers and doctors. These professionals must have a minimum amount of insurance coverage to operate in the state.
Professional liability insurance can help you recover from financial losses due to lawsuits or claims. It can also provide peace of mind, allowing you to focus on your work without worrying about potential risks.
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Why Do You Need It?
You need professional liability insurance if you're in a profession like law, medicine, architecture, IT, real estate, or consulting, where you're expected to meet certain standards of training and expertise.
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Professions like these often have state and industry standards to follow, and written client contracts can also dictate what's expected of you.
If you fail to meet these standards, you could face a significant lawsuit and financial loss for your clients.
Lawyers, doctors, architects, and other professionals are just a few examples of those who need to be properly covered by professional liability insurance.
Your business relies on your professional expertise, and you can't afford to have a mistake or error result in a huge financial hit.
Professional liability insurance is there to protect you and your clients from financial loss in case something goes wrong.
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How Much Do You Need?
Calculating the right amount of professional liability insurance in Texas can be a challenge, but a good rule of thumb is to consider your business's annual revenue. If your business generates less than $250,000 in revenue, you may be able to get away with a lower policy limit.
In Texas, the minimum policy limit for professional liability insurance is $100,000, but most businesses opt for higher limits to protect themselves from costly lawsuits. As a general guideline, it's recommended to have a policy limit that's at least 3-5 times your annual revenue.
Purchasing and Choosing

If you're a member of a group or employed at a hospital, it's essential to ask questions and understand the details of the insurance policy provided to you.
Texan Insurance reps can help you make the best choice for your professional liability insurance needs. They'll guide you through the process and ensure you get the best value.
To select the right insurance carrier, consider working closely with insurance professionals who understand your business and its risk.
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Types of Healthcare Coverage
There are several types of healthcare coverage to consider when purchasing a plan.
Medicare is a government-funded program for people 65 or older, or those with certain disabilities.
Private insurance plans, on the other hand, are offered by companies like UnitedHealthcare and Blue Cross Blue Shield.
Short-term health insurance plans provide temporary coverage for people who need a bridge between plans or have a gap in coverage.
Group health insurance plans are often offered by employers to their employees.
Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are two types of managed care plans.
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Selecting and Purchasing

Texan Insurance reps are experts in professional liability insurance and can help you make the best choice.
You should work closely with insurance professionals to select the appropriate coverage and limits for your specific field and level of exposure to professional liability claims.
Texan Insurance reps understand your business and its risk, and can guide you to the right amount of coverage.
They can then check your needs with several top-notch insurance providers, ensuring that you get the best value.
Commercial Liability (Errors and Omissions) Insurance is an important risk management tool for professionals and businesses in Texas, helping them mitigate financial risks associated with allegations of professional negligence or mistakes.
If you're a member of a group, or employed at a hospital, it's essential to ask questions and understand the details of the insurance policy provided to you.
To choose the right insurance provider, consider seeking guidance from a reputable insurance company, like Texan Insurance.
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Cost and Coverage Limits
Professional liability insurance in Texas can be a complex topic, but understanding the basics of cost and coverage limits can help you make informed decisions.
Insurance companies can't tell you what limits to carry, but you can speak with colleagues who practice in your specialty and location to see what limits they carry. Your financial advisor or insurance agent may also recommend limits based on your financial situation.
There are two limits to coverage: the maximum per claim (known as "each claim") and the maximum paid during the policy period (known as "all claims").
The cost of professional liability insurance can vary significantly, but a recent survey found that the average annual cost is around $140/month for a small business.
Cost
The cost of professional liability insurance is a significant consideration for small businesses. It can vary significantly by profession and industry.
A recent survey found that the average annual cost of professional liability insurance is around $140/month for a small business. This cost is always much smaller than the thousands or even millions that just one lawsuit could cost.
Coverage Limits
Coverage limits are a crucial aspect of professional liability insurance. They determine the maximum amount your policy will pay in the event of a claim.
Insurance companies can't dictate what limits you should carry, so it's up to you to decide. However, you can get recommendations from colleagues in your specialty and location, as well as your financial advisor or insurance agent.
The two main limits to consider are the maximum per claim, also known as "each claim", and the maximum paid during the policy period, known as "all claims."
There are different types of coverage, including medical director coverage, which protects physicians serving in an administrative capacity as head of an organized medical staff.
- Medical director coverage protects physicians who are also serving in an administrative capacity as head of an organized medical staff.
Remember to consider your individual circumstances when deciding on coverage limits. Your financial situation and practice specialty can all impact the right limits for you.
Texas Specific Information
In Texas, the minimum amount of professional liability insurance required for architects and engineers is $1 million per occurrence and $2 million aggregate.
Texas has a unique statute that allows for a 30-day notice period for claims against architects and engineers, giving them time to respond and address any issues.
The Texas Department of Insurance is responsible for regulating insurance companies and ensuring they comply with state laws and regulations.
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Looking for in Texas

If you're looking for Professional Liability Insurance in Texas, you've come to the right place. It's a type of insurance that protects professionals and businesses from financial losses due to claims of negligence, errors, omissions, or mistakes in their professional services.
Professional Liability Insurance in Texas is also known as Errors & Omissions Coverage and covers a wide range of professionals who make their living from their unique professional expertise. This includes lawyers, doctors, consultants, real estate agents, architects, and more.
To get the right coverage, it's essential to understand the key aspects of Professional Liability Insurance in Texas. Coverage provides financial protection against legal defense costs, settlements, or judgments related to professional liability claims. It can also cover claims of professional negligence, errors, omissions, misrepresentation, breach of duty, or failure to meet professional standards.
Here are some key benefits of Professional Liability Insurance in Texas:
- Customized risk management services to help mitigate risk
- Coverage for data breaches and privacy liability actions
- Employment practices liability insurance to protect against employment-related claims
- Medefense coverage for disciplinary actions
In addition to these benefits, it's crucial to review your policy carefully and understand what is and isn't covered. Timely reporting of potential claims is also essential to ensure that the insurance company can provide coverage and legal defense when needed.
Texas Medical Association Membership
The Texas Medical Association (TMA) is a powerful force in the state, with over 48,000 physician and medical student members working together to improve the health of all Texans.
TMA has been a driving force for change since 1853, partnering with 110 county medical societies to set high professional and ethical standards for physicians.
To join TMLT, you must be a member of TMA or have a pending membership application.
Understanding the Process
Professional Liability Insurance triggers in a few different situations, including when you make a mistake that costs your client(s) money.
Undelivered results or services can also lead to a claim, which can be costly and damaging to your reputation.
You're not just covered for mistakes, but also for negligent services.
Here are some situations that can trigger a claim:
- You make a mistake that costs your client(s) money
- Undelivered results/services
- Negligent services
Frequently Asked Questions
Do I need professional liability insurance if I work for a company?
Typically, you don't need professional liability insurance if you're an employee working for a company, but it's always best to check your contract or consult with HR to confirm
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