Small Business Articles
When considering, “What is professional liability insurance?”, it is maybe best summarized by another name that’s often used for it: errors and omissions insurance (or E&O insurance). A professional liability insurance definition would say it’s a type of small business insurance coverage that protects you from financial consequences if a client accuses you of not living up to the accepted standards and best practices of your profession.
People who make a living providing professional advice or services to clients are required to adhere to certain standards and best practices for their industry. If that describes you or your company, you face the risk that a client may feel that you made a mistake that adversely affected them and sue you for the financial damages they believe were caused by your error.
Operating any type of business involves risk or liability. Fortunately, there is small business insurance that can protect you from the financial impact of those risks. Two of the many types of coverage available are professional liability insurance (also called errors and omissions or E&O insurance) and general liability insurance. When it comes to general liability versus professional liability, it can be difficult to know which type of coverage you need.
Professional liability insurance is coverage for individuals and organizations that provide professional advice or services in the event that a client alleges a mistake or oversight was made. Also called errors and omissions insurance (or E&O for short), it’s critically important if your business is focused on providing expertise.
We want you to make well-informed decisions about your insurance needs. Learn from answers to the questions most frequently asked by business owners.