professional liability insurance

Professional liability insurance, also known as malpractice or errors-and-omissions insurance, protects professionals like doctors, lawyers, and accountants from claims of negligence. Unlike general business liability, it covers claims for any type of damage, not just bodily injury or property damage, and has limits per claim rather than per accident. This is because a single professional error can affect multiple parties.1

A key feature is that the policy allows the insured to take any action to court, as an out-of-court settlement might imply guilt to the public. However, it excludes coverage for agreements that guarantee a specific result of treatment or service, meaning dissatisfaction with the service itself is not covered. This insurance is a crucial aspect of liability insurance, which generally covers damages arising from negligence.12