Professional Liability Insurance
Protect your business beyond the limits and coverages of other existing policies you may have.
What is Professional Liability Insurance?
Professional Liability Insurance (PLI) is insurance which covers professionals against negligence, malpractice, misrepresentation and other claims initiated by their clients. This kind of coverage is important for professionals who have expertise in a specific area (e.g., lawyers, accountants, graphic designers) as general liability would not cover them for the reasons previously mentioned.
What Does Professional Liability Insurance Cover?
Professional liability insurance helps cover claims of:
- Negligence
- Misrepresentation
- Inaccurate advice
- Malpractice
It is important to stay covered because even if you feel you have done nothing wrong, your client can still sue your business if they believe you have made a mistake. Without this coverage, you could be responsible for the total amount of a claim and out-of-pocket legal defense costs.
It is also important to remember that professional liability insurance does not cover everything. For example, it will not help your business with the following claims:
- Bodily injury or property damage. (Learn more about our general liability insurance policies)
- Work-related illnesses or injuries. (Learn more about our pay as you go workers comp insurance policies)
- Data Breaches. (Learn more about our data breach insurance policies)
Who Should Have Professional Liability Insurance?
Many types of businesses need professional liability insurance and some states may even require it.
You should consider getting a professional liability insurance policy if you:
- Offer professional services directly to customers
- Have a consulting business or regularly give advice to clients
You sign an agreement with a client stating you will carry this coverage