Professional Liability - A Complete Guide For Business Owners
Providing professional services requires expertise, accuracy, and a commitment to meeting client expectations. However, even experienced professionals can face allegations of mistakes, negligence, missed deadlines, or inadequate advice. Professional liability insurance helps protect businesses and individuals against certain financial risks associated with claims arising from their professional services. What Is Professional Liability Insurance? Professional liability insurance is a type of business insurance designed to cover claims alleging errors, omissions, negligence, or failures in professional services. It is also commonly known as errors and omissions (E&O) insurance, although terminology and coverage can vary by profession and policy. For example, if a consultant provides advice that a client claims caused financial losses, the client may pursue legal action. Depending on the policy terms, professional liability coverage may help pay legal defense expenses, settlem...