Professional Liability Insurance

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Professional liability insurance provides indemnity against claims that your services caused a client financial harm due to a mistake, missed deadline, or perceived negligence. Here’s how it typically works.

1. An incident occurs
   A client believes your professional work caused them a financial loss. For example, an architect’s flawed building design results in construction delays, or a consultant's guidance leads to unexpected costs.
2. The client files a claim against you
   They may request compensation or take legal action to recover damages. This can happen even if you did nothing wrong.
3. You notify your insurance provider
   As soon as you're aware of a potential claim, you should report it to your insurer. This allows the insurance company to investigate and respond promptly.
4. Legal defense and settlement
   Your PL insurance may cover your legal defense costs, attorney fees, and a settlement or court-ordered judgment—up to your policy limits. This coverage applies even if the claim is unfounded.
5. You may pay a deductible
   If your policy includes a deductible, you'll be responsible for that portion of the costs.

This kind of protection gives small business owners peace of mind—and helps prevent a single lawsuit from derailing your business.

This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverage is subject to underwriting, terms, conditions, and limits of the policy.

Have additional questions about what’s covered?

Our licensed advisors are here to help. Contact us at 1-866-283-7545 (Monday – Friday, 7am – 10pm ET; Saturday – Sunday, 8am – 5pm ET) to get clear guidance tailored to your business and risk profile.

Professional liability (PL) and general liability (GL) insurance protect your business from different types of risks—and many businesses benefit from having both.

• Professional liability insurance helps protect you if a client claims your work, advice, or services caused them a financial loss. PL covers errors, omissions, or negligence. Think of it as coverage for the intangible risks of doing expert work.
• General liability insurance protects you from claims of bodily injury, property damage, or advertising injury—often arising from accidents that happen in person or during everyday business activities. GL covers the physical and reputational risks that can happen in the course of running your business.

If you offer services or advice, and also meet with clients or advertise your business, you likely need both types of coverage.

Not sure what you need? Just answer a few quick questions and find out in 20 seconds.

Here’s an example of a business that needs both general liability and professional liability coverage. A marketing consultant may need professional liability insurance in case their marketing strategy results in a client’s financial loss – and general liability coverage in case a client slips and falls during an office visit. Together, both policies provide more comprehensive protection.

Here are some other professions that often need both PL and GL insurance.

• Architects and engineers: PL can cover design flaws or other professional missteps; GL covers property damage or injuries on the job site.
• IT professionals: PL covers software errors or data losses; GL covers damage to a client's hardware or other property.
• Contractors: PL covers claims of faulty workmanship; GL covers damage to a client’s property.

By combining both policies, you can protect your business from a wider range of claims – whether physical, financial, or reputational.