What is covered by professional liability insurance?

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Professional liability insurance, also known as errors & omissions insurance is specialized protection for professionals providing a service or advice to clients. Lawsuits can arise if a client feels you’ve caused them financial loss as a result of that service or advice – or a failure to provide it. Even if you’re innocent, you’ll still need to pay for your legal defence. Professional liability insurance helps cover expenses in those situations. It’s essential protection for anyone whose business involves giving opinions or providing a service.


What does professional liability insurance cover?

Professional liability insurance can help cover legal expenses if you’re sued by a client for financial loss arising from your professional service or advice, or failure to provide it. This includes accusations of:

  • Failure to provide services
  • Inaccuracy
  • Loss of documents
  • Misrepresentation
  • Mistakes
  • Negligence
  • … and more.

Your protection can help you cover the following expenses:

  • Legal defence costs
  • Judgement awards
  • Settlements

Keep in mind that you’ll need to pay a deductible and there is a per-term (or per-year) policy limit.

What isn’t covered by professional liability insurance cover?

There are a few things that aren’t covered by professional liability insurance, such as:

  • Intentionally harmful acts
  • Criminal acts
  • Claims of injury or property damage on your premises or caused by your unintentional action – covered by general commercial liability insurance
  • Claims of injury or property damage due to a product you sell or manufacture – covered by product liability insurance
  • Damages as a result of a cyberattack or data breach – covered by cyber liability insurance

Depending on your industry, you may require a few types of liability insurance.

Which professions should have professional liability insurance?

If you provide a service or professional advice, you should have professional liability insurance. Here are a few examples:

  • Consultants
  • Contractors
  • Designers
  • Financial advisors
  • Fitness coaches or instructors
  • Forensic experts
  • Graphic designers or artists
  • Health practitioners, such as dieticians, nutritionists, massage therapists, physiotherapists, chiropractors, et cetera
  • IT professionals
  • Photographers
  • Social workers
  • … and more

You may also be obliged to carry professional liability insurance by your profession or contract.

Contact us to find out more a get a professional liability insurance quote online today.