Professional Liability Insurance
Liability protection for advice and services
What is professional liability insurance?
Professional liability insurance protects businesses that provide professional advice and services against claims of negligence or substandard work. It's also known as errors and omissions (E&O) insurance.
Experts who give advice, such as attorneys and consultants, usually require professional liability coverage because their mistakes can cause financial or indirect loss for their clients. These incidents are typically excluded from other types of business insurance.
Why is professional liability insurance important?
Show video transcript
Professional liability insurance from Progressive Commercial, also known as errors and omissions insurance, can protect businesses from claims of negligence or substandard work related to their services.
This type of coverage is important for any business that sells professional services or gives advice like accountants, architects, real estate agents, and more. It can protect your business if a client feels your professional work didn’t meet their expectations or caused them financial harm, whether or not you made a mistake.
Having this coverage is a great way to make sure you’re not handling legal fees and settlement costs on your own. Protect your small business with professional liability from Progressive Commercial. Call us or start a quote online today.
DISCLAIMER: Prices vary based on how you buy. Progressive Casualty Insurance Co. Coverage provided and serviced by affiliated and third-party insurers.
What professional liability insurance covers
Professional liability insurance covers claims related to your business's services, regardless of whether you made a mistake. It can help pay for damages and legal defense costs up to your policy limits for a variety of issues, such as:
- Negligence and other mistakes
- Incorrect advice
- Misrepresentation
- Copyright infringement
- Personal injury
- Failure to deliver a service
Learn more about how professional liability coverage from Progressive Commercial can protect your business's reputation and develop customer trust.
What professional liability insurance doesn't cover
Small business professional liability insurance typically excludes the following claims:
- Property damage
- Bodily injury
- Intentional acts
- Employee injuries
- Cyber incidents
- Contractual liability
Be sure to ask about what professional services insurance does and doesn't cover when getting a quote.
How does professional liability insurance work?
Many professional liability policies are written on claims-made forms, which means that coverage only applies to claims filed during the policy period. You can add a retroactive date to cover incidents that occur before your policy begins.
Professional liability insurance can protect against claims that arise from services provided in the past and for work performed anywhere in the world.
To make a claim, contact your professional liability insurance provider and prepare to describe the incident to us.
Who needs professional liability insurance?
Any small business that sells a professional service or gives advice should consider buying professional liability insurance to protect against lawsuits that arise from their mistakes.
Some states legally require certain professionals, such as lawyers, to have a policy before they can do business. Clients might also ask you to carry a specific amount of professional liability insurance as part of their contracts.
A variety of industries benefit from having liability insurance for professionals, including:
Browse business insurance by profession to learn more about how professional liability can help you.
What does professional liability insurance cost?
In 2023, the national median cost of professional liability insurance through Progressive Commercial was $42 per month. The average monthly price was $64.
Learn more about which factors influence the cost of professional liability insurance, and explore ways to reduce your premium. Keep in mind that a professional liability quote is the only way to discover your exact rate.
Why choose professional liability insurance from Progressive Commercial
Progressive Commercial can connect you with the right professional liability insurance for your small business. Our experts will tailor a policy to meet your unique risks and provide outstanding customer service, from purchasing to claims.
Start a professional liability insurance quote
The quickest way to get professional liability insurance is to start an online quote. You can also call us to speak with an agent. They’ll help you identify which professional liability limits best match your small business and personalize a policy to meet your needs and budget.
Common questions about professional liability insurance
Is errors and omissions insurance the same as professional liability?
Is a professional liability policy the same as indemnity insurance?
Professional liability is a type of indemnity insurance for businesses that offer advice and services. In general, indemnity policies refer to a wider range of scenarios and industries.
You can ask your professional liability insurance company for more information on the differences when you get a quote.
When is professional liability insurance required?
You might need professional liability insurance depending on your job, location, and clientele. Certain clients may require it before they agree to work with you. In some places, specific professions might also legally need this coverage. Be sure to check your business contracts and local laws.
What's the difference between professional liability and general liability policies?
Professional liability covers negligence related to advice and services. For example, it can protect a lawyer whose client sues for poor counsel or a consultant whose mistake causes financial loss.
General liability only protects against physical injury or property damage to a third party. For example, general liability could cover medical payments if a customer slips and falls on a business owner's premises.
Learn more about general liability vs. professional liability.
Will professional liability cover me even if the lawsuit is baseless?
Yes. Professional liability coverage can protect against unsupported negligence claims.
Does a professional liability policy cover employees and subcontractors?
Typically yes, but it depends on the employee type. Professional liability insurance protects your employees while they are on the job. However, subcontractors usually need their own professional liability policy.
Can Progressive help me get professional liability insurance in my state?
