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What is Professional Liability Insurance?

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What is Professional Liability Insurance?

If your business offers advice or personal services to customers, you may need a professional liability policy. But what exactly is professional liability insurance?

It protects your business if you make mistakes

Professional liability insurance (also referred to as “errors & omissions”) is a policy that covers some costs associated with claims or lawsuits of negligence (alleged or not).

Here’s an example: you’re an accountant, which requires you to work with sensitive client information to analyze finances and provide appropriate guidance. If you slip up and make a costly error or your client’s private data is accidentally leaked by your company, professional liability insurance would help cover defense costs, legal fees, and awards.

Another example: you’re a hairdresser and your customers expect exceptional quality styling and hair care. If a client claims you were negligent and turned their hair pink instead of red or used harsh chemicals that caused hair loss, professional liability insurance could help cover some legal costs you’d be required to pay.

You work hard every day to deliver the best services, but you’re human, and mistakes happen. Professional liability insurance can help provide peace of mind if or when an error occurs!

Professional liability doesn’t cover everything.

Professional liability does have its limitations. This type of insurance doesn’t cover:

  • Malicious, dishonest, criminal or illegal acts
  • Copyright, patent or trademark infringement
  • Bodily injury or physical injury
  • Property damage
  • And more

Want to know more about professional liability insurance? Check out:

Is Your Business Insured?

Whether you’re shopping for a brand-new policy or comparing policy prices, we can help you find affordable protection that’s personalized to your needs. Start your quote here!

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What is Professional Liability Insurance?


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*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.

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