Question

The effect on the investigator's professional liability insurance as the result of a perpetrator's lawsuit against the investigator is:

a. Not an issue if the investigator is found not to be liable in a court of law.
b. Not an issue if the investigator is found not to be liable in a court of law and pays the litigation costs.
c. Possibly negative even if the investigator is completely innocent and wins in court.
d. None of the above.

Answer 1

The effect on an investigator's professional liability insurance as a result of a perpetrator's lawsuit can be possibly negative even if the investigator wins in court. This can impact their insurance rates and renewal options due to the litigation effect.The correct option is c.

Step-by-step explanation:

The question concerns the potential impact on an investigator's professional liability insurance following a lawsuit by a perpetrator, even if the investigator is ultimately found not to be liable. The correct answer here is (c) Possibly negative even if the investigator is completely innocent and wins in court. This is because the mere act of being sued can affect insurance rates and coverage availability. Lawsuits, regardless of the outcome, often need to be reported to the insurance provider and can lead to increased premiums or even difficulties with renewing a policy. This is the so-called 'litigation effect,' which can have financial implications for the investigator.