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December 27, 2023
Dorsal Insurance

Professional Liabilty Insurance

What is professional liability insurance?

Professional liability insurance is a type of business insurance that provides coverage for professionals and businesses to protect against claims of negligence from clients or customers. Professional liability insurance typically covers negligence, copyright infringement, personal injury, and more. Claims covered by a professional liability policy can include damages caused by things you did and/or things that you should have done. Professional liability is also sometimes called professional indemnity insurance or errors & omissions coverage.

How does professional liability insurance work?

Although many types of businesses can be helped with professional liability insurance coverage, let’s look at a few real life examples. Let’s say you’re a project manager. You accidentally forget to get to tell your client about needed sign offs causing project delays that increase the cost. Or maybe you’re a massage therapist and your client sues you, claiming you caused tissue damage. These are just a few of the cases that professional liability insurance could help you with. Many people often pair it with general liability insurance for more complete coverage.

You should consider professional liability insurance if your business provides:
  • A professional service
  • Regular professional advice to clients
  • Contractual service to your clients

    What does a professional liability insurance policy cover?

    Common items covered by professional liability insurance are:

    Mistakes Or Negligence

    Services provided (or not provided) by your company that result in client damages.

    Copyright Infringement

    Copyright law issues, mistakes, oversights, and misunderstandings.

    Personal Injury

    Claims for libel or slander, whether they’re true or not.

    What else is covered under professional liability insurance?

    Previously Performed Services

    This protects current and previous work (for an agreed length of time).

    Considering this timeframe is critical, as anything outside it is not covered.

    Defense Costs

    Legal defense costs associated with lawsuits against your company (regardless of fault).

    Temporary Staff andIndependent Contractors

    Work performed by your employees, including temporary staff and independent contractors.

    What’s the difference between general liability and professional liability?

    In a quick comparison, general liability insurance covers physical risks. This might be property damage or bodily injuries. Professional liability insurance covers errors and omissions, which are more abstract. Professional liability insurance may cover issues like failure to deliver, professional misconduct, breach of contract and more.

    Call Dorsal Insurance today for a quote at 786.601.2485

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