We would recommend professional liability, or errors and omissions, insurance to anyone who provides professional advice or specialized services. Coverage will help protect you against claims that your advice/services caused a client financial or other harm, and sometimes a simple accusation can be costly, even if you did nothing wrong.
Professional liability insurance offers protection against financial damages stemming from alleged or actual mistakes in your professional services. Claims covered under errors and omissions insurance include the following:
Personal injury under professional liability refers to reputational or character-based injuries, such as libel and slander.
Even the most experienced professionals can make mistakes, overlook details, or miss deadlines. When a mistake leads to a client’s financial loss, they may sue to recover their damages.
Using a photo, design, code snippet, or written content can result in a copyright claim if you don’t have rights to the material. Creative professionals are especially vulnerable here. Professional liability may include intellectual property risks like these.
One of the biggest benefits of professional liability coverage is defense costs. Legal fees, court costs, expert witnesses, and settlements all add up. Coverage usually begins when a lawsuit is filed.
Choosing the right professional liability policy isn’t one-size-fits-all. Your risks depend on your industry, services, contracts, and even the types of clients you work with. At Allied Insurance, we’ll help you sort through these details to ensure you are properly covered.
Our team understands professional risk across a wide range of industries and can help you identify where your business is most exposed, review client contracts for coverage requirements, compare coverage options, limits, and exclusions, and find cost-effective bundles that combine professional liability with other needed policies.
Maybe. Whether you’re required to have professional liability depends on your licensing requirements and client contracts. Licensing boards, industry associations, and commercial or government contracts can all contain coverage requirements.
Yes. Professional liability and general liability provide distinct protections. General liability insurance protects against common risks faced by businesses across many industries. Professional liability covers risks specifically associated with the professional advice or services you provide.
Maybe. Some contractors' professional liability policies can extend coverage to work performed by subcontractors, but it’s not automatic. One of our insurance professionals can help you set up coverage for subcontractors, if needed.
Coverage limits will vary based on your industry, the services you provide, the types of projects you manage, and the potential impact of your mistakes. Standard limits begin at $1 million in coverage, but higher or lower limits may be appropriate. An Allied Insurance Managers agent can help you determine an appropriate limit for your company.
Don't expect professional liability to cover illegal acts, intentional wrongdoing, or criminal behavior. It also excludes bodily injury and property damage, which are covered under general liability; employment disputes, which are covered under employment practices liability; and cyber attacks, which are covered under cyber liability insurance.
No. Professional liability is available regardless of business structure. You’ll find affordable coverage available to sole proprietors and independent contractors. Of course, LLCs, corporations, and nonprofits can all purchase policies, too.
Maybe. If your field requires state or other licensure, you’re likely subject to a minimum coverage requirement. A professional association may also have a requirement. For those with major commercial or government contracts, it’s also common for these contracts to impose their own minimums.
“Public Liability" is a term more commonly used in the UK and Australia. It’s roughly equivalent to general liability in the U.S. Professional liability focuses on financial losses arising from your professional advice, services, or errors. Many businesses need both public/general liability and professional liability to be adequately protected.