What is Professional Liability Insurance?


Professional liability – commonly referred to as errors and omissions coverage or malpractice insurance – has always been an important part of the insurance portfolio for many insureds. Hi, I’m Chip Fridrich and today we will quickly look at this type of coverage and give a brief overview. A professional liability claim occurs when a professional service that an insured provided causes their client or customer to suffer harm due to their negligent actions or errors. Sounds pretty simple – or is it?

Sample types of businesses that may benefit from this type of protection would be doctors, lawyers, real estate agents and yes, even people like me, insurance agents. It is important to understand fully that professional liability coverage is excluded on most commercial insurance policies. So if you do not have a separate policy to cover you for this exposure then you don’t have the coverage.

When thinking of whether they need this protection, an insured needs to identify if their exposure or in simple terms “what they do every day” could ever involve misrepresentation, negligence, or bad advice that could be damaging. In most doctor’s cases that could be the bad result of care or a procedure that goes badly. A real estate agent may possibly in error give their client incorrect information about the terms of a contract they are signing. These are just two examples but the prevailing factor is that the need for professional liability is prevalent and is needed in many cases where it does not exist currently in an insurance portfolio.

Most professional liability policies are issued through specialty carriers and here at our agency we have access to the top companies in the market to give you outstanding pricing and broad coverage options. Contact us and we will walk you through the process.

Thanks again for reading this blog  I present them for one simple purpose – to educate consumers about insurance because the insurance industry is without a doubt one of the more misunderstood and misinterpreted in the financial services world. Hopefully, you have gained some insight by reading. If you would like to learn more about our Agency and how we can partner together, contact us at info@fpa.insure.


Leave a Reply

Your email address will not be published. Required fields are marked *