Professional liability insurance is specialty coverage not provided by homeowner’s endorsements, in-home business policies, or business owner’s policies. Sometimes called errors and omissions (E&O) insurance or professional indemnity insurance, professional liability insurance provides liability coverage to professionals living off their expertise. Unlike general liability coverage that protects businesses against third party accidents, professional liability covers claims directly related to the service you provide.
When a client, customer, or patient claims you have failed to complete the services you agreed to, that your work contained errors, or you provided substandard care or work, they may be able to sue you. Professional liability insurance provides coverage for third party damages and your defense costs related to these claims.
Professional liability insurance provides worldwide protection for the following claims.
- Alleged or actual negligence: Your policy covers claims of negligence even if they are unfounded or false.
- Personal injury (like libel or slander): False claims can have a serious impact on your reputation and lead to significant financial damages.
- Copyright infringement: Issues related to copyright laws, including mistakes, oversights, and oversights are included.
- Temporary staff and independent contractors: Your employees, temporary staff, and contractors can also be covered by the policy.
- Claims arising from services provided in the past: Your policy covers an agreed timeframe that will provide coverage for both current and previous work.
Claims Not Covered by Professional Liability
Personal liability isn’t designed to act as full commercial liability coverage. It protects you against claims related to your professional actions. It does not cover the following claims.
- Bodily injury or property damage
- Fraudulent acts
- Employment matters
- False advertising
- Patients and trade secrets
- Lastly, personal, identifiable information