Professional Liability Insurance Law and Legal Definition

This type of insurance protects professional practitioners such as Chartered Architectural Technologists (MCIAT), Architects, quantity surveyors, home inspectors, Lawyers, physicians, and Accountants against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. Business owners providing services should purchase professional liability insurance, also known as errors and omissions insurance. The insurance protects business against malpractice, errors, negligence in provision of services to customers.

The primary reason for professional liability coverage is that a typical general liability insurance policy will only cover a bodily injury, property damage, personal injury or advertising injury claim. However, professional liability insurance protects against financial losses which could potentially due to business owner’s misrepresentation of the product capabilities.