Professional Liability Insurance: What is It and Who Needs It

What is Professional Liability Insurance?

No matter how careful professionals try to be, anyone can make a mistake. And if a client feels that a mistake caused them financial harm, they may file a lawsuit against the professional. This is where professional liability coverage comes into play.

Professional liability insurance is a form of liability insurance that protects individuals in service or advice-based positions from lawsuits against negligence claims. This type of insurance can also be referred to as Errors and Omissions (E&O) or Malpractice Insurance.

Who Needs Professional Liability Insurance?

There are many different types of professionals that purchase professional liability insurance to protect themselves, including:

  • Accountants
  • Attorneys
  • Brokers
  • Business Consultants
  • General Contractors
  • Physicians
  • Veterinarians

What is Covered and Not Covered by Professional Liability Insurance?


Claims of negligence are covered under a professional liability policy. Examples of other types of claims covered by professional liability insurance include:

  • Missed deadlines
  • Undelivered services
  • Misrepresentation
  • Personal injury (libel or slander)
Not Covered

Employment disputes, such as sexual harassment, are not covered by professional liability insurance. These is types of claims are covered under Employment Practices Liability Insurance (EPLI).

Other claims not covered under professional liability insurance include:

  • Business property damage
  • Customer injuries and/or property damage
  • Employee injuries
  • Workplace discrimination
  • Wrongful termination

Keep in mind that other types of claims may be included in a policy, depending upon the profession. You must always read your policy in full to know exactly what is and is not covered.  This is something the insurance professionals at RMC Group can help you with.

For more information about professional liability insurance and how RMC can help you, contact us today at 239-298-8210 or email us at [email protected].