Definition - What does Professional Liability mean?
Professional liability is the risk that someone could get sued for causing damages to another person as a result of their work. Professional liability only includes damages that occur as a result of a person’s work. If a person causes damages to another person outside of work, that is a personal liability.
Insuranceopedia explains Professional Liability
Professional liability insurance pays to cover the costs of professional liability. If someone is sued because of a professional liability, this insurance would cover the legal fees and the settlement if the insured loses the trial. These policies are designed to cover a specific type of professional liability in different fields. For example, a doctor would want to buy malpractice insurance to cover medical liability.
Coverage from personal liability insurance policies won’t cover damages from professional liability. This can get people in trouble. For example, if someone uses their personal vehicle for their work, the personal auto insurance policy won’t cover liability damages in an accident. As a result, if the insured causes an accident while working, they will not have any liability coverage. That’s why it’s important to have professional liability insurance to cover possible losses from a job.