Professional Liability Insurance in Utah
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Professional liability insurance in Utah

Professional liability insurance, also called errors and omissions insurance (E&O), protects small business owners against the cost of client lawsuits over unsatisfactory work. Although not required by state law, it's strongly recommended for professional service providers in Utah.

What is covered under professional liability insurance in Utah?

Professional liability insurance covers the cost of lawsuits related to the quality of your work, including legal fees and settlements.

It covers the following types of customer claims for many Utah businesses:

  • Accusations of negligence, such as an architect who creates an unsafe building design.
  • Work mistakes and oversights, such as an accountant who makes a mathematical error or fails to include the right data in their work resulting in a financial loss to the client.
  • Inaccurate advice, such as an attorney who misinterprets a legal statute that results in a costly mistake.
  • Missed deadlines and undelivered services, such as a web designer who fails to build a website before a client’s busy season.

Additionally, if the public interest requires medical malpractice coverage in an area of Utah with no available insurance carriers, the Utah Insurance Commissioner may issue coverage through all insurers to healthcare providers.

Is professional liability insurance required in Utah?

Utah state law doesn't require small business owners to have a professional liability insurance policy. However, you might need this coverage to sign a contract, get a license in your field, or hold a position.

Healthcare professionals

Professional liability is referred to as medical malpractice insurance when it applies to doctors and other healthcare professionals, such as therapists.

Utah doesn't have a legal mandate requiring practicing physicians to carry medical malpractice insurance. However, many hospitals and physician’s offices in Utah have malpractice insurance requirements for doctors with admitting privileges.

Standard liability limits that most doctors maintain are $1,000,000 per occurrence / $3,000,000 aggregate (per year). Higher risk specialties like surgeons and OB/GYNs will need higher limits. This coverage is essential in a setting where a mistake could cause a bodily injury or worsen a medical condition.

Additionally, if the public interest requires medical malpractice coverage in an area of Utah with no available insurance carriers, the Utah Insurance Commissioner may issue coverage through all insurers to healthcare providers.

This coverage would include professional liability policies and individual and group accident and sickness policies providing medical, surgical or hospital expense coverage on either a prepaid or expense incurred basis

Real estate professionals

Utah doesn't require real estate agents to have E&O insurance. But your real estate franchise, bank partners, and even clients may ask you to have this coverage and show proof of insurance in business contracts.

In this type of profession, E&O covers situations such as not disclosing a problem with a property, listing incorrect information in an MLS sheet, and bodily injuries or property damage that can happen during a showing.


For lawyers, professional liability is also known as legal malpractice insurance. While this coverage is not mandated and lawyers are not required to disclose their lack of coverage to clients, practicing Utah attorneys must report their insurance status to the Utah state bar annually.

Get professional liability insurance for your Utah business

Who should carry professional liability insurance in Utah?

Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm. Even a frivolous lawsuit can be expensive between accounting for attorney’s fees, court costs, or a settlement.

Industries often at risk for professional liability claims include:

Technology professionals

IT consultants and other tech professionals are susceptible to lawsuits related to system downtime, data breaches, missed deadlines, and errors. They can bundle E&O insurance and cyber insurance into one policy—tech E&O—to protect against all of these risks.

Building design businesses

Those who work in building design, such as architects and engineers, are at risk of a lawsuit if a client accuses them of making a costly mistake. For example, a bridge could develop cracks over time, or a project could be delayed for months due to unforeseen circumstances.

Contractors and construction businesses

Those who work in construction and contracting, such as carpenters and electricians, could face a client lawsuit over construction delays. They could also face accusations of negligence if the customer is dissatisfied with their work or has to make expensive changes or repairs after a job is finished.

Insurance professionals

Insurance professionals, including agents and insurance brokers, deal with large amounts of financial data and at times have to use their best judgment in advising their clients. If a client doesn’t have enough coverage, or the right type of coverage, they might blame their agent or the insurance agency for failing to make sure they were protected.

Even if you’ve done nothing wrong, a disgruntled customer might file a lawsuit if your advice leads to a financial loss.

Finance and notary professionals

Notary E&O insurance, also called professional liability insurance, can cover court costs and other legal expenses if a notary public is sued for an unintentional error or oversight. Some lawsuit examples include unintentionally violating the law while notarizing, being named in a lawsuit even if you did nothing wrong, or an imposter forging your signature on a document without your knowledge.

Additionally, professional liability insurance can help accountants and other finance professionals recover quickly from lawsuits and other unexpected costs from an accounting error, data breach, or office injury.

How much does professional liability business insurance cost in Utah?

View video transcript.

Get professional liability insurance to protect yourself from claims that you didn't deliver on a deadline, or made a costly mistake.

Some clients require you to have this policy. It can protect you from expensive lawsuits for only about 60 dollars per month.

Don't put your business at risk. Apply for your policy today!

Alert. Alert.

The average cost of professional liability insurance nationwide is $61 per month. In the Beehive State, the average cost is $70 per month.

The cost of professional liability coverage depends on several factors, such as:

  • Your type of business, industry, and similar risk factors
  • Coverage limits and deductible
  • Your business size and location
  • Day-to-day operations
  • Your claims history
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How does professional liability insurance work in the state of Utah?

Professional liability insurance covers your legal defense costs if you’re sued over a mistake in your professional work.

Even if you’ve done nothing wrong, a legal battle can be expensive. In addition to your attorney’s hourly rate, you’ll likely be charged for administrative costs such as copying, filing, and travel expenses. You may also have to pay for expert witnesses to testify on your behalf, a court-ordered legal judgment, or a settlement to avoid trial.

Professional liability insurance covers all of the above, up to the coverage limits of your policy. The policy limits you choose should take into account how expensive it can be to fight a professional liability lawsuit. You also need to determine the amount of coverage required to obtain a contract or work in a certain field.

This policy can be very affordable for small businesses in Utah. Contact an insurance agent if you need help choosing the right coverage limits or other options.

Are there exclusions in professional liability insurance?

A professional liability policy covers a wide range of lawsuits, but it will not cover intentional harm you cause to others. Most insurance companies exclude:

  • The illegal violation of any law, regulation, or statute
  • Any services you provide under the name of another entity, such as a subsidiary business or organization not listed on your policy
  • Defamation, such as libel and slander
  • Discrimination

Does general liability insurance include professional liability coverage?

General liability insurance doesn't include professional liability coverage. General liability covers common business operation risks and liability claims such as customer injuries, customer property damage, and advertising injuries.

If a customer falls and suffers an injury at your workplace, it would be covered by your general liability policy, which would include your legal defense costs. If someone sues you over unsatisfactory work, it would be covered by your professional liability coverage.

Read more about general liability vs. professional liability insurance.

What other Utah business insurance policies do companies need?

Commercial general liability and professional liability are often the first two types of business insurance purchased by small business owners. However, businesses in Utah, from Salt Lake City to St. George and from Hartford to Provo, may also need:

Workers’ compensation insurance is required for all employers in the state of Utah, even if the company only has one employee, including part-time workers. Workers' comp covers medical expenses and lost wages for workers who are injured on the job.

Commercial property insurance covers your physical business property and equipment. It’s often required to sign leases.

A business owner’s policy (BOP) combines general liability coverage and commercial property insurance. It's usually less expensive than buying each policy separately.

Commercial auto insurance is required in Utah for any vehicles used solely for work purposes.

Cyber insurance covers the cost of dealing with a data breach or malicious software attack.

Employment practices liability insurance (EPLI) will protect against legal costs related to claims of harassment, discrimination, and wrongful termination that professional liability typically won’t cover.

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I'm ready to get professional liability insurance for my Utah business. What's next?

Complete Insureon’s easy online application today to compare insurance quotes from top-rated U.S. providers. Our Utah licensed insurance agents can help answer any questions and provide advice on business insurance coverage.

Once you find the right small business insurance for your business needs, you can begin coverage and receive your certificate of insurance in less than 24 hours.

Updated: August 24, 2023
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