Professional liability
What is professional liability insurance?
Professional liability, also known as Errors and Omissions (E&O) Insurance, covers your business from customer legal disputes arising from professional negligence, mistakes, or missed client deadlines. Costs associated with defending your business, regardless of whether the claims are valid, can be covered under this policy. Certain industries or clients require proof of professional liability insurance to conduct business.
What does professional liability cover?
Negligence
Unfulfilled Task
Mistakes
Who needs professional liability insurance?
Any business that provides any consulting or professional services, should consider sourcing protection from common business risks in the event of potential negligence, errors or third-party accusations. If your business is at risk of making a professional error or omission you should consider a professional liability policy.
See if you're covered
Small Business Owner
Managing your own business means you have enough on your plate.
E-Commerce Merchant
Selling online is hard enough without having to think about what else can go wrong.
Startup
Don't let unnecessary business risks make your founder journey bumpier than it needs to be.
Freelancer
Freelancing is all about keeping things simple and focusing on what you do best.
Why is professional liability important?
Regardless of industry or size, a professional liability policy can protect your business from common financial risks that can be incurred as a result of providing professional services. Certain states and various clients require proof of professional liability insurance in order to allow businesses to transact.
See if you‘re coveredWhat other kinds of business insurance do I need?
Bodily Injury
Someone other than you (or an employee) is injured and your business is responsible for medical, legal and damages.
Third-Party Property Damage
Customer property is damaged by you (or an employee).
Advertising and Reputational Injury
Your business is accused of copyright infringement, malicious prosecution, slander, libel, wrongful eviction and violating a person's privacy.
Product Liability
Products developed or sold by your business harm people or property, and your business is responsible for legal and medical expenses.
Professional liability insurance FAQs
- Is professional liability insurance required by law?
- Professional liability requirements vary by state and industry. However, your business can be exposed to high risks of financial loss if you are not properly protected. You may also lose potential clients and customers if you are asked to show proof of insurance and are not able to provide evidence of coverage. In short, although it might not be legally required, a professional liability policy is crucial to protect your business from everyday risks.
- How do I show proof I have a professional liability policy?
- Once you've purchased your professional liability policy, a Certificate of Insurance (“COI”) will be sent to you and can be presented to any party that requires proof of coverage. You can also request that the COI be sent to any third-party that requests verification of insurance.
- What is an additional insured? Can I add one to my professional liability?
- An additional insured is any party that wants to be listed as a covered party under your policy. In certain cases, an additional insured might be a vendor, marketplace, landlord or any other third-party whom which you conduct business with.
- Does professional liability cover my employees?
- Yes, employees directly related to your business will be covered under a professional liability policy.
- Is professional liability insurance the same as errors and omissions (E&O) insurance?
- Yes, professional liability insurance and errors and omissions (E&O) insurance are interchangeable terms and cover the same exact risks.
