Professional Liability

The profile of a professional liability insurer is unique. The investment portfolio for such an insurer depends on the nature of the professions insured. The different types of professions that require this niche insurance are:

  • Doctors
  • Lawyers
  • Construction-related Professions
  • Consultants
  • Insurance Agents
  • Financial Services
  • Charities and Nonprofits


For instance, a surgeon's liability claim will greatly differ from that of a charity. The risk and cash flow requirements of these liability profiles must be analyzed individually to determine the proper amount of risk to place in the portfolio. A frequent mistake for an insurer is to understate the amount of tolerable risk in the portfolio because the liability profile is not understood easily. In a low interest rate environment in which the consensus suggests rising rates, this liability mismatch becomes magnified.