If you think professional liability insurance (also called errors and omissions insurance) is something for doctors, lawyers and similar professions only, you may have a substantial gap in your insurance protection.
If your business provides services that include specialized advice or functions of any kind, you might need professional liability insurance. Such insurance can cover claims from a party alleging that a breach in your professional standard of care or advice caused that party financial damages. This coverage is usually provided under a separate policy from a property or general liability policy.
Most general liability policies specifically exclude coverage for errors and omissions, so be specific with your insurance agent or broker about all the services provided by your personnel. There are nuances based on your trade or profession that can change what your general liability policy covers, and there are some people—for example, in allied health fields—who might not seem like “professionals” at first glance who actually do fall under that definition. It’s important to get everyone affiliated with your company properly insured.
