Paige Cerulli Last Updated On: March 12, 2024

Professional Liability Insurance

During a photo shoot, a prop collapses and a client is injured. While a massage therapist treats a client, the client is hurt by that treatment. In these situations and more, professionals may face legal consequences for their services. Professional liability insurance can help to protect them.

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What is Professional Liability Insurance?

Professional liability insurance, also called errors and omissions insurance, is designed for business owners and professionals who provide services to clients for a fee. This type of insurance helps to protect you against any negligence claims that your customers or clients might file.

What Does Professional Liability Insurance Cover?

Professional liability insurance can protect your business against multiple types of claims:

  • Professional negligence that causes financial loss to a client, such as if an accountant doesn’t file a client’s tax forms by the deadline
  • Breach of contract, such as if a photographer agrees to deliver a certain number of photos in a contract but neglects to provide that promised product
  • Copyright infringement, such as if a graphic designer creates branding products that are too similar to another company’s copyrighted materials
  • Failure to deliver a service on time, such as if an IT professional doesn’t successfully make a system upgrade by the date specified in a contract
  • Errors, such as if a chiropractor makes a mistake that harms a patient
  • Professional misconduct, such as if a financial advisor acts in conflict of their client’s interest

Your professional liability insurance policy covers your legal defense costs associated with covered lawsuits. In addition to covering your work, it can also cover work that your employees and independent contractors perform.

Do You Need Professional Liability Insurance?

Legal fees and any damages you may have to pay can be expensive, and even if you’re careful, it’s still possible to be sued. Any business providing a type of service for a fee, such as training, coaching, consulting, therapy, photography, real estate, and more, should be protected by a professional liability policy.

Certain professionals, such as medical professionals or lawyers, may be required to carry liability insurance to practice.

How Much Does Professional Liability Insurance Cost?

Several factors affect the cost of your professional liability insurance, including the industry your business is in and how common lawsuits are, the amount of coverage you need, the number of employees you have, and where your business is located. If you have filed past liability insurance claims, that claim history can raise your rates. Since rates can vary so much, getting a professional liability insurance quote will give you the most accurate idea of your costs.

How Can You Get Professional Liability Insurance?

Most companies that offer business insurance will also offer professional liability insurance. Get a professional liability insurance quote today to start comparing policies and find the best coverage for your business. 


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