Professional liability insurance

Client contracts often require professional liability insurance. Businesses in certain industries are also required to have this coverage.

A variety of factors can impact the cost of professional liability insurance, including your level of experience and the services you offer.

To apply for professional liability insurance, you’ll need to provide basic information about your business, operations, and revenue.

A certificate of professional liability insurance is a document that provides proof of coverage and summarizes the most important information about your professional liability insurance policy.

When a dissatisfied client sues over a mistake made by your business, professional liability insurance can cover the cost of legal defense, including the cost of hiring a lawyer.

While disputes with clients over negligent, unfinished, or inadequate work make up the bulk of cases, professional liability lawsuits can also encompass similar disputes with business partners.

A retroactive date defines how far back in time a loss can occur for your policy to cover your claim. If a claim happens prior to your retroactive date, your policy won’t provide benefits. It’s a feature of claims-made professional liability or errors and omissions insurance.

Standard of care refers to a professional's duty to act reasonably and provide quality services. If you fall short of the standard of care, a client usually has the right to sue.

Tail coverage is an addition to a claims-made policy. It extends coverage for incidents that happened during the time you had your policy, but a claim was not filed until after your policy expired or was canceled. Tail coverage is another name for an extended reporting period.

Professional liability insurance is defined as a form of insurance that can help pay for legal expenses when clients claim something you did – or didn’t do – hurt them financially.

Errors and omissions (E&O) insurance is a form of insurance that covers business mistakes or undelivered services that caused financial harm to a customer.

A claims-made policy provides benefits only if you file a claim while it’s active. If you cancel your policy and then report a claim, you’ll have no insurance coverage.