What Does Professional Liability Insurance Cover?

Professional liability insurance helps to protect you from claims or lawsuits filed against you or your business. The specific coverage depends on the type of liability policy you purchased. Generally, if a mistake is made or a wrongful act is attributed to your business, professional liability insurance will help offset some of the financial burdens that come with it.

Most policies will cover the delivery of professional services by those insured. However, the policy will list exceptions to this coverage, and you need to clearly understand what these areas are and how they apply directly to you.

If one of your employees makes a mistake on behalf of a client, and the client sues, your business is liable for those costs if the insurance policy does not cover it. Make sure you read your policy and understand what is or isn't covered. Ask your provider about adding provisions to your policy if the standalone policy doesn't cover everything you need. It's important that you do your due diligence and be upfront about your business's services and risks so your provider can help craft a policy that fully covers your needs.

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