Professional Liability Insurance

Professional liability insurance helps protect your small business against claims by customers, clients, or other businesses who believe they were harmed because of services or advice your business provided.

Also referred to as errors and omissions insurance or professional indemnity insurance, this type of coverage is designed to help cover legal fees, costs, and damages for relevant claims. It does not protect against criminal prosecution.

Depending on your industry or profession, your state may require your business to have a professional liability insurance policy. Also, in some industries, clients and customers may require proof of professional liability insurance. This can include contractors, architects, engineers, attorneys, consultants, real estate agents, marketers, counselors, and others. There are also variations on what professional liability insurance includes within various professions, such as medical malpractice and legal malpractice insurance.

Even if your state or clients do not require that you have professional liability insurance, you may want to add this coverage to help protect your business in the case of a liability claim.

What’s typically covered by professional liability insurance?

Professional liability insurance helps cover claims including:

Inaccurate advice






Violation of good faith