What Is Professional Liability Insurance?

Professional liability insurance, also known as errors and omissions insurance, helps protect businesses against claims related to professional services or advice. It is commonly used by consultants, healthcare providers, and service professionals.

This coverage may apply when a client alleges financial loss due to a mistake, oversight, or failure to perform services as expected. Defense costs are often included, even if the claim is unfounded.

Professional liability insurance is separate from general liability and addresses different types of risk.