Professional Liability Insurance
Definition - What does Professional Liability Insurance mean?
Professional liability insurance is insurance that protects business professionals, such as doctors, lawyers, and accountants, from negligence and other related claims their clients may file. Professionals with expertise in a certain area need this type of policy, as general liability insurance does not cover negligence, misrepresentation, malpractice, and other business errors or omissions that may arise.
Insuranceopedia explains Professional Liability Insurance
Even the most professional business people can make mistakes, and even if an error was not made, a client may still sue. For this reason, professional liability insurance is especially important, as lawsuits may cost significant amounts of money that could bankrupt a business. Depending on the field, it is often offered under different names, such as medical malpractice for doctors and errors & omissions for real estate agents. Professional liability insurance is one among a number of different types of commercial insurance that can be of great benefit to business people. After all, everyone makes mistakes.