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Professional Liability Insurance


What is Professional Liability Insurance?

If your business offers advice or personal services to customers, you may need a professional liability policy. But what exactly is professional liability insurance?


It protects your business if you make mistakes

Professional liability insurance (also referred to as “errors & omissions”) is a policy that covers some costs associated with claims or lawsuits of negligence (alleged or not).

Here’s an example: you’re an accountant, which requires you to work with sensitive client information to analyze finances and provide appropriate guidance. If you slip up and make a costly error or your client’s private data is accidentally leaked by your company, professional liability insurance would help cover defense costs, legal fees, and awards.

Another example: you’re a hairdresser and your customers expect exceptional quality styling and hair care. If a client claims you were negligent and turned their hair pink instead of red or used harsh chemicals that caused hair loss, professional liability insurance could help cover some legal costs you’d be required to pay.

You work hard every day to deliver the best services, but you’re human, and mistakes happen. Professional liability insurance can help provide peace of mind if or when an error occurs!


Professional liability doesn’t cover everything

Professional liability does have its limitations.

This type of insurance doesn’t cover the following

  • Malicious, dishonest, criminal or illegal acts

  • Copyright, patent or trademark infringement

  • Bodily injury or physical injury

  • Property damage

  • And more


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