For most people, the question ” what is professional liability insurance?” brings to mind malpractice coverage that doctors and lawyers are usually required to have to cover damages resulting from mistakes or oversights in their work. In reality, though, professional liability insurance covers many types of professionals, including architects and engineers, accountants, computer technology experts, real estate or mortgage brokers, insurance agents, and many more professions.
What is Professional Liability Insurance?
Also known as errors and omissions (E&O) coverage, professional liability insurance is designed to cover the costs of professional mistakes that cause financial harm to someone. Different than a company’s general liability or property insurance, professional liability coverage includes payment of legal defense fees and experts, as well as payment of damages awarded to the injured party, up to the amount of the policy limits.
Get the Correct Professional Liability Coverage for the Job
Because it is a specialized area of insurance, professional liability coverage has some unique challenges and requirements. For best protection it is worth the effort to go beyond a standard off-the-shelf E&O policy, and work with insurance professionals who are skilled in the nuances of professional malpractice insurance to tailor coverage to the specific needs of the profession at issue. Not all coverage plans are equal, and the differences could be costly when there is a claim at issue. It pays to know not only what is professional liability insurance, but also to understand how it can be designed to best fit your individual professional needs.