What does professional liability insurance cover?

Professional liability insurance is specifically designed to protect professionals against claims that arise from their work, particularly when clients allege negligence, errors, or omissions in the services rendered. This type of coverage is crucial for professions that provide advice or professional services, such as doctors, lawyers, and consultants, because it helps to safeguard them from legal actions that may occur when clients believe they did not receive adequate or correct services.

In contrast, while claims arising from personal injury relate to bodily harm or emotional distress, they typically fall under general liability insurance rather than professional liability. Claims related to business partnerships and loss from natural disasters also do not fall under the umbrella of professional liability insurance; they are addressed through different types of policies that cater specifically to those issues—like partnership agreements or property insurance. Thus, the focus of professional liability insurance is very much on the quality and reliability of professional service delivery, making it essential for professionals to have this coverage to protect their practice and financial well-being.