What is the insurance term for coverage that protects a professional against claims of negligence or errors?
Answer
Professional liability insurance
Professional liability insurance protects a professional against claims of negligence or errors.
The coverage is designed for services that depend on specialized knowledge or advice. A client may claim that an accountant, architect, consultant, lawyer, engineer, doctor, or other professional made a mistake, failed to meet a standard of care, or caused financial harm.
Different professions often use specialized names. Errors and omissions insurance is common for many service providers, while medical malpractice insurance is a professional-liability form for health-care practitioners. Policies typically address defense costs and covered damages, subject to limits, deductibles, exclusions, and the policy’s claims conditions.
Professional liability is distinct from general liability. General liability usually concerns bodily injury, property damage, or certain personal injuries, while professional liability focuses on the quality or consequences of professional services.