# What is covered by professional liability insurance?

> Protect your professional services with clarity—discover what professional liability insurance covers, where limits lie, and why you need it.

Professional liability insurance, also known as errors and omissions insurance, is specialized insurance protection for professionals providing services or advice to clients. Lawsuits can arise if a client believes you have caused them financial loss because of a professional service or advice you gave or a failure on your part to provide such service or advice. Even if you're innocent, you'll still need to pay for your legal defense. Professional liability insurance helps cover your legal expenses in those situations. It is essential protection for anyone whose business involves giving opinions or providing a professional service.

What Does Professional Liability Insurance Cover?

Professional liability insurance can help cover legal expenses if you are sued by a client for financial loss arising from your professional service or advice or your failure to provide it. Accusations can include the following:

Failure to provide services

Inaccuracy

Loss of documents

Misrepresentation

Mistakes

Negligence

Your professional liability protection can help you cover the following expenses:

Legal defense costs

Judgement awards

Settlements

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

What Isn't Covered by Professional Liability Insurance?

There are a few situations that aren't covered by professional liability insurance, including the following:

Intentionally harmful acts

Criminal acts

Claims of injury or property damage on your premises or caused by your unintentional action (covered by commercial general 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 cyber-attack or data breach (covered by cyber liability insurance)

Depending on your industry, you may require a few types of liability insurance. A broker can help you further understand coverage offered by each type of insurance and work with you to secure reliable coverage for all liability risks associated with your business.

Which Professions Should Have Professional Liability Insurance?

If you provide a professional service or advice, you should have professional liability insurance. Here are a few examples of professions that could benefit from professional liability insurance:

Consultants

Contractors

Engineers

Financial advisors

Fitness coaches or instructors

Forensic experts

Graphic designers

Health practitioners

IT Professionals

Photographers

Social workers

You may also be required by contract to carry professional liability insurance by your clients and partners.

Connect with a broker in person or over the phone to discuss your options or get a free professional liability insurance quote online.

Read more: 

Ultimate Guide to Errors and Omissions Insurance

The Average Cost of Professional Liability Insurance: All You Need to Know

Professional Liability vs. Commercial General Liability

Do you need Professional Liability insurance?

Can You Claim Professional Liability Insurance on Taxes?

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