It protects your practice if you make a mistake.
Professional liability insurance, also called Professional Indemnity Insurance, protects professional practitioners against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called Medical Malpractice and some refer to it as errors & omissions .
The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim. The above mentioned professional services and products can cause claims without causing a bodily injury, property damage, personal injury or advertising injury. Common reasons alleged in making claims on these policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. Professional Liability Insurance protects you against covered claims arising from real or alleged errors or omissions, including negligence, in the course of your professional duties.
Here are some examples of claims your may face: