Commercial Professional Liability
Professional Liability coverage is to protect professionals (such as accountants, attorneys) against liability incurred as resulting from errors and omissions in performing professional services. There are exceptions (physicians, architects, and engineers), most professional liability coverages only protect economic or financial losses suffered by third parties, as opposed to bodily injury (BI) and property damage (PD) claims.
Frequently Asked Questions Regarding Commercial Professional Liability
Do I need professional liability?
Professional liability insurance is in addition to a businessowners policy or an in-home business policy and protects against lawsuits filed against them by clients. Any professional expected to have extensive technical knowledge or training can be sued of they fail to use the degree of skill expected of them. This is also called “errors and omissions” liability insurance. Examples of professionals who should consider this type of insurance are:
- Real Estate Agents
Is professional liability the same as malpractice insurance?
Yes, malpractice insurance is also referred to as medical professional liability. It is simply professional liability just for licensed health care professionals and protects them from liability associated with wrongful practices resulting in bodily injury, medical expenses, legal expenses, and property damage.
Do I need general and professional liability insurance?
You may need them both, but it is important to understand the difference between the two. They are similar as they are both designed to protect against business liabilities and prevent lawsuits from putting you out of business. The difference comes in coverage. General liability only covers against physical injury to people or property arising from day to day operations. Professional liability however covers negligence of that professional service or advice and is usually financial in nature. Bad advice for example that led to financial loss to a client may lead to that client suing over that bad advice. Professional liability insurance can cover those expenses.