What type of insurance covers professionals against malpractice lawsuits?

Professional liability insurance covers professionals against claims such as malpractice, negligence, errors, or omissions arising from their professional services.

The coverage is often called errors and omissions insurance, or E&O. In medicine it is commonly described as medical malpractice insurance; lawyers may carry legal malpractice coverage. Similar policies serve accountants, architects, engineers, consultants, insurance agents, and other specialists whose advice or services could cause a client financial or physical harm.

Professional liability differs from general liability insurance. General liability typically addresses bodily injury, property damage, or certain advertising-related claims, whereas professional liability focuses on the quality of specialized work. Product liability instead concerns injuries or losses caused by a product, and workers’ compensation covers job-related injuries to employees.

Policy wording matters. Many professional liability policies are claims-made policies, meaning the claim generally must be made during the policy period and may require a retroactive date. Coverage often includes defense costs, settlements, or judgments, subject to exclusions, deductibles, limits, and the specific profession insured.