Professional Liability Insurance

Professional liability insurance coverage can protect you and your business against actual or alleged errors and omissions that may occur while providing your professional services. These claims can include anything from giving incorrect advice or omitting a piece of information to failing to deliver your professional service within the required timeframe due to an error or omission.

Professional liability insurance coverage may be useful for a range of business types in various industries. Some examples may include:

• engineers or designers sued by clients for misinterpreting renderings and/or ordering costly materials that can't be used
• project managers sued for project delays and cost overruns after failing to inform clients about necessary sign-offs
• massage therapists sued by a client for purported tissue damage following a massage
• medical billing employees sued for incorrectly coding medical procedures on insurance forms
• public notaries sued for notarizing a document in which not all of the required fields were completed.

The above are just a few of the many scenarios in which a professional liability policy could cover your expenses and relevant damages resulting from a professional negligence claim.

As small business insurance experts, we will guide you through the defense process and provide advice, guidance, and support. When a covered claim is reported, our claims team will professionally and expertly investigate the matter to ensure a fair and efficient resolution. If necessary, we’ll appoint an attorney to represent you in the matter, even if the claim is groundless.

There are many scenarios where defense costs may arise.

• Management Consulting: A recommendation is made that turns out poorly, and the consultant is sued for the financial loss. In such a case, our professional liability policy may pay for defense costs and a settlement or judgment.
• Process Serving: A process server accidentally serves the wrong person and is sued by the misidentified party for character damage.
• Property Management: A claim is made against a property management firm for purportedly denying a rental lease based on a tenant's race, color, religion, sex, disability, or national origin.
• Real Estate Brokerage: A real estate agent is sued for allegedly failing to disclose a property’s known defects before closing a sale.

Regardless of business type, size, and industry, if your organization is sued you could face significant costs for a legal defense, whether or not you have done anything wrong. This is where our professional liability policy would step in to protect you and your business.

Libel and slander are forms of personal injury with legal ramifications which could negatively affect you and your business. Whether the claims are valid or not, if you or a colleague are purported to have said or written something untrue or negative about another person or business, you may be sued for personal injury. Alleged libel and slander claims may arise from intentional disparaging of a person or business, an accidental slip-up made in conversational passing, or anything in between. Fortunately, our professional liability insurance coverage can step in to protect you and your business against such claims.

Your business can be sued for any alleged wrong or error committed by any employee representing your brand, including temporary staff and independent contractors. In such a case, we can step in and protect you and your business against these claims.

One such example may arise when a professional photographer hires a temporary assistant to help out with a large-scale job. If the photographer’s assistant is alleged to have been negligent in performing professional services on the photographer’s behalf or have committed an act of libel or slander against a client, professional liability insurance could protect the photographer’s business from unexpected legal expenses.

There are risks involved in hiring temporary staff and independent contractors, but the operational and financial benefits often outweigh them. This is especially true when your business is protected with Hiscox insurance.

Claims can be made against you or your business for work that was completed in the past. At Hiscox, we may be able to cover such a claim that is made during the policy period, even if the alleged wrongful act took place before you were insured with us.

Retroactive coverage can be provided if your business was insured by another carrier on the date that the alleged incident took place. By offering coverage from a ‘retroactive date’ you are protected for professional services you provided in the past, dating back to the active date on a previous policy for claims made during the policy period.

Contact us to learn more about how we may be able to cover a claim that occurred before you purchased your first professional liability insurance policy with us.

In today’s modern world, business knows no geographic boundaries. Fortunately, if you are insured by Hiscox, your coverage extends worldwide. We cover claims that arise from work performed all around the world, no matter which city, country, or continent you’re working in, provided that any action or legal proceeding giving rise to the claim is filed in the United States, a U.S. territory, or Canada.

Worldwide professional liability insurance coverage is applicable for a range of professions, including:

• architects and engineers sent overseas to design buildings and infrastructure
• consultants and freelancers sent to other countries to implement new strategies and ideas
• global IT and technology professionals working in multiple places to coordinate complex systems
• personal trainers hired to work for high-profile clients who travel frequently
• artistic professionals, such as photographers and videographers, sent to distant lands and far-away places to get the perfect shot for overseas clients.

All of these types of professionals and business owners, as well as hundreds of others, can benefit from having our professional liability insurance, which can cover claims wherever you are in the world.

Depending on your professional service, we generally will not cover damages or claim expenses if you injure someone or damage their property. If you’d like to be covered for bodily injury or property damage liability, please visit our general liability insurance page.

We won’t cover any fraudulent, dishonest, or criminal acts. However, we’ll defend these actions until they're proven to be fraudulent, dishonest or criminal by proper process in court. If this happens, we’ll kindly request that you reimburse us for those costs.

We will not cover you for claims alleging any improper employment practices committed against your employees or for any workers compensation claims or employer’s liability claims. Please visit our workers compensation page for more information.

We will not cover you for any false advertising claims.

We will not cover your failure to protect any personally identifiable information in your care, custody or control.

We will not cover any medical, nursing, legal or actuarial services regardless of your occupation. We will also not cover any services you perform not specified by the professional services endorsement attached to your policy.

Professional liability insurance and errors and omissions insurance are essentially the same thing. People use these terms interchangeably, and they are referring to the same basic product.

You often run extremely important and complex projects for your clients that they may not fully understand. Professional liability insurance is especially important for businesses like IT/technology consultants, business consultants and marketing consultants for whom incorrect advice or a failure to perform professional services could lead to a lawsuit. Even if you haven’t made a mistake, you can still be sued. A covered claim under a Hiscox professional liability insurance policy will cover legal fees, protecting you and your business from potentially crippling legal expense.

We understand the risks your professional small business faces on a daily basis. We also understand the risks an IT/technology consultant faces are different than those of an architect. We customize coverage to your specific profession.

For example, an IT/technology consultant would most likely need software copyright infringement coverage as part of their standard policy. This is irrelevant for most architects, so we don’t include it in policies for architects. This approach means that you only pay for the coverage you really need.

You can also choose the deductibles and coverage limits you need to suit your business. Over time, you can change your limits of protection as your business needs change.

Buying this type of insurance directly from Hiscox will often mean you enjoy greater overall value. We like to reward businesses that actively manage their risk. Depending on your specific business, you will be asked questions about the types of risk management practices you have in place, allowing us to offer you our best rates.

We also offer customers up to a 5% discount if you buy two or more Hiscox products. Also, by choosing a higher deductible (the amount you pay for each claim), you can lower your premium. It’s only fair, as you’re taking on more of the risk.

Professional liability insurance premiums can vary a lot depending on several factors, including the size of your business, your occupation, the types of activities you conduct, and the level of protection you choose. Our minimum premiums start from $270 a year. Visit our professional liability insurance quote page and see some examples, or get an instant, no-obligation quote for your business now.

Hiscox is currently licensed to offer professional liability insurance coverage in 49 states across the US (excluding Alaska). However, if we are not currently licensed in your state, we can still help. We have access to specialist insurance brokers across the US who may be able to assist you. Contact one of our licensed advisors at 844-253-4301 (Monday - Friday, 8am-10pm EST).

Yes, it is. Many clients require their consultants or contractors to have a minimum level of professional liability insurance coverage before they can start a professional engagement. Typically, they will want to see proof you have $1,000,000 of professional liability insurance.

We can provide this for you online immediately, or you can call one of our expert advisors and your policy will be issued via email, typically in about 15 minutes. You will also receive a certificate of insurance, which you can then email to your client as proof of insurance. It’s as simple as that.