Professional Liability Insurance, also known as Errors & Omissions Insurance, is generally coverage for financial loss you cause to a third party due to a mistake or omission in your product or service. This is in contrast to general liability insurance, which is coverage for bodily injury or property damage that you similarly cause. There are exceptions, such as medical malpractice insurance, where insurers cover bodily injury. Also, many insurance carriers offer a combined form that features both general liability and professional liability, depending on the industry and nature of the risk.
Many businesses have a professional liability exposure and don't even know it. The key to remember is that if your product or service fails in its warranted and/or expected capacity, and your customer is financially affected by it, you may be open to legal consequences. Professional liability insurance comes in many different forms and can be useful to cover many industries and risk exposures. Click on the links below to understand the specific details associated with professional liability insurance for each category: