Since it may go by a few different names in various circumstances, many people wonder: “what is professional liability insurance?” Basically professional liability insurance is the same type of coverage as malpractice insurance for a medical professional or a lawyer. Also known as errors and omissions (E&O) coverage, professional liability insurance can cover the costs of mistakes that any professional may make.
Who is a Professional?
A professional is a person with a special degree or training, and who is often certified or licensed, to provide a particular service. Beyond lawyers and doctors, professionals who may need liability coverage include:
- Real estate brokers and agents
- Insurance agents
- Company presidents or executive officers
In addition to the general professional roles that need liability coverage for mistakes made, or actions not taken that should have been taken in their professional duties, some types of companies need professional liability coverage, such as advertising and PR agencies, temporary staff agencies, web host companies, and more.
What Does Professional Liability Insurance Cover?
The next key question, after understanding what is professional liability insurance and whether it is right for your company or business, is: “what will be covered by professional liability insurance?” The coverage typically covers the costs of legal defense of claims made against the policyholder, including costs of experts and lawyer fees, as well as paying any damages or judgments to the injured party, within the limits of the policy amount. Contact a professional for an evaluation of professional liability needs for peace of mind in your day-to-day practice.