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Writer's pictureNate Jones, CPCU, ARM, CLCS, AU

What is Professional Liability Insurance and Do I Need It?

by Nate Jones, CPCU, ARM, CLCS, AU - Wexford Insurance - Indianapolis Indiana

Professional Liability Insurance Wexford Insurance

Professional Liability Insurance or other known as Errors and Omissions Insurance or E&O Insurance is essential for any company or professional who renders professional services. If a client thinks a mistake in your professional services caused them a financial loss, they could be entitled to sue you. Medical Malpractice or Healthcare Professionals Liability Insurance information can be found on it's dedicated page here.

What does Professional Liability Insurance Cover?

  • Negligence

  • Misrepresentation

  • Inaccurate Advice

Even if you and your business did not do anything wrong, your business could still get brought into a suit. Professional Liability Insurance helps pay for those legal defense fees that would have had to come out of your pocket.

Professional Liability does not cover the following:

  • Liability or Alleged Liability for Bodily Injury or Property Damage. This exposure is better covered under a General Liability Insurance Policy.

  • Workplace related Illness or Injury. This exposure is better covered under a Workers Compensation Policy.

  • Liability for a Data Breach of customer information. This exposure is better covered under a Cyber Insurance Policy.

Why your business may need Professional Liability Insurance: ​

  • Vender/Customer Contractor Requirements - Minimum Insurance Standards.

  • Your business offers professional services to the public or other businesses.

  • Your business regularly gives advice as part of it's services.

Types of Companies that need Professional Liability Insurance:

  • Accountants

  • Advertisement Agencies

  • Architects & Engineers Errors and Omissions

  • Auditors

  • Banks

  • Consultants

  • Contractors

  • Education Professionals

  • Financial Advisors

  • Financial Institutions

  • Graphic Designers

  • General Contractors

  • Healthcare Professionals

  • Home Builders

  • Insurance Agencies

  • Interior Designer

  • IT - Technology Professionals

  • Market Research Firms

  • Real Estate Agents & Brokers Errors and Omissions

  • Tree Service Contractors

  • and More

Feel free to use Wexford Insurance as a resource for your Professional Liability Insurance needs. If we cannot help you, we will point you in the direction of someone who can.

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