Professional Liability Insurance

Professional Liability Insurance

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Worst case scenario? Bring it on. General Liability can help cover a wide range of risks.

Business errors

You receive an accusation from a client or customer stating that you have committed a professional error resulting in financial loss for them.

Claims of negligence

An individual alleges that your lack of action or improper behavior led to a monetary loss or physical/mental injury to them.

Legal fees & defense costs

Your business requires legal representation to defend against a lawsuit following a claim.

Legal defense costs

You are in the position of requiring legal representation to protect your business following an allegation of a professional error.

Worst case scenario? Bring it on. General Liability can help cover a wide range of risks.

Business errors

You receive an accusation from a client or customer stating that you have committed a professional error resulting in financial loss for them.

Claims of negligence

An individual alleges that your lack of action or improper behavior led to a monetary loss or physical/mental injury to them.

Legal fees & defense costs

Your business requires legal representation to defend against a lawsuit following a claim.

Legal defense costs

You are in the position of requiring legal representation to protect your business following an allegation of a professional error.

Here’s everything you need to know about Professional Liability insurance:

What is Professional Liability insurance?

If you are accused of a professional error or negligence, professional liability insurance can provide valuable protection for your business. In the event that a client or customer files a lawsuit against you alleging that your actions caused them financial harm, this insurance policy can offer financial assistance to cover legal expenses or correct the mistake.

Professional liability coverage is commonly purchased by professionals in fields such as accounting, consulting, and real estate, although it is also utilized by a wide variety of other businesses. This type of insurance may also be referred to as errors and omissions insurance or professional indemnity insurance.

Why is Professional Liability important?

By providing financial assistance in the event of a customer claim, professional liability insurance can facilitate a swift resolution, helping to prevent confrontations and safeguarding your business reputation - regardless of the accuracy of the allegation.

In cases where you are found to be at fault for an error or negligence, your professional liability coverage can help cover related expenses. Additionally, if you are falsely accused, this type of insurance policy can provide assistance in paying for defense costs.

Who needs Professional Liability insurance?

Professional liability coverage is typically essential for most business owners as it can offer protection against unexpected expenses arising from an accusation of a professional error.

The specifics of a professional liability insurance policy can vary depending on the profession, and the details of each claim are typically unique. However, here are some examples of how this type of insurance can help safeguard various types of businesses:

Tax professional

If a client sues you for an error that caused them to miss out on substantial tax benefits and pay more than necessary, professional liability insurance may be able to assist in covering some of your defense costs.

Architects and engineers

In the event that a client claims that a design mistake on your part resulted in the collapse of a stairwell and caused injuries, your professional liability insurance may offer coverage to assist in paying for damages if your business is found to be at fault.

Real Estate

If a prospective buyer accidentally damages a wall while viewing a furnished property during an open house, and the property owner holds you responsible for the repair costs, your professional liability insurance could provide financial assistance.

What does Professional Liability insurance cover?

Professional liability insurance can assist small businesses in mitigating unforeseen expenses in two fundamental areas:

Your business mistakes

Even when you and your employees follow all the rules and take every precaution, mistakes can still occur - it's an unfortunate reality that almost everyone experiences at some point.

Professional liability insurance can provide valuable protection for instances when you or your employees are accused of making a mistake that causes financial harm to another person or business, potentially sparing you from having to pay out-of-pocket for damages.

For instance, if you are a property manager and the property owner claims that you made repeated mistakes on tenant transactions paperwork, resulting in $50,000 of financial loss, they may sue you to recover the losses. In this scenario, your professional liability coverage could help cover some expenses up to the policy limit.

Accusations of professional negligence

Every profession has a set of service standards, and as a business owner, it is generally expected that you will act in the best interests of your clients. However, if your business actions result in a financial loss for a client, you may find yourself accused of professional negligence and forced to defend yourself.

For instance, even if you did nothing wrong, an angry client may still attempt to take you to court, claiming negligence and subpar work. The legal battle could be protracted, and your legal team may charge you $500,000 to fight a lawsuit that you ultimately win.

In such a scenario, your professional liability insurance policy may help cover some expenses up to the limits of your policy, including legal and lawyer fees.

If you want to explore your professional liability insurance options, you can start a free quote.

What isn’t covered?

Note: It's important to clarify that while professional liability insurance won't cover the situations mentioned above, it is still a valuable form of coverage for businesses.

Professional liability insurance is designed to protect your business against claims related to professional negligence, mistakes, or errors and omissions that result in financial harm to your clients. However, there are certain situations where this coverage won't apply, including:

Intentional wrongdoing & illegal activity: If you or an employee intentionally causes harm, neglects to comply with regulations, or engages in illegal activities, professional liability insurance won't cover the costs.

Property damage or bodily injury: General liability insurance is typically designed to cover claims related to bodily injury or property damage, not professional mistakes or errors.

False advertising: Professional liability insurance won't cover claims related to false advertising or other marketing-related issues.

Employee injuries: Workers' compensation insurance is designed to cover medical expenses and lost wages for employees who are injured on the job.

Car accidents: Commercial auto insurance is typically needed to cover accidents involving vehicles owned by your business.

How much does Professional Liability insurance cost?

The cost of professional liability insurance can vary based on several factors such as the nature of your work. However, some policies may start from as low as $18.34 per month*. If you want to know more about the pricing, you can get more information about the cost of professional liability insurance.

How do I get Professional Liability insurance?

GravySpoon. provides tailored coverage based on your business needs and the specific risks you face. You can easily obtain a professional liability insurance quote online in as little as 10 minutes.

To begin, we will ask you a few simple questions about your business and operations, such as your industry, business location, years in business, number of employees, expected revenue, and recent insurance and claims history. Once you provide this information, you will receive a personalized insurance quote and recommendations for additional coverage options.

If you are satisfied with the quote, you can adjust the package limits and complete your purchase. Your insurance coverage will start immediately after payment, and you will have access to your certificate of insurance.

Take advantage of our free instant quote service and protect your business today.

Compare Professional Liability insurance

We’ll walk you through the differences and similarities between professional liability and other types of coverage to help you make the best choice for your business.

• Professional Liability vs. General Liability insurance

• Professional Liability insurance vs. Errors & Omissions

• Liability insurance vs. Commercial Property insurance

• Compare other business insurance policies

More frequently asked questions

This is a statement encouraging the reader to learn more about professional liability insurance by reviewing frequently asked questions and reaching out to licensed insurance advisors. Additionally, the statement encourages the reader to consider exploring coverage options and obtaining an instant quote online to purchase insurance within minutes when they are ready.

What are the main differences between Professional Liability and E&O insurance?

Professional liability and errors and omissions (E&O) insurance, despite having different names, generally offer the same protection. These insurance policies provide coverage when you are accused of performing an incorrect or inadequate job.

Different industries refer to the coverage in different ways, with some using the term professional liability and others using errors and omissions. For instance, professional liability is typically used to describe coverage for professional mistakes made by engineers, accountants, architects, and consultants. On the other hand, E&O insurance is commonly used to describe coverage for professions like insurance agents and real estate agents.

However, it is important to note that GravySpoon provides contractors with E&O insurance that is specifically designed for the construction trades, and this coverage is different from our standard professional liability insurance.

Does Professional Liability insurance cover my subcontractors or employees?

While your professional liability insurance policy can cover your employees for the services they deliver, it's important to note that coverage may vary depending on the details of your specific policy. For instance, if you own an architecture firm and one of your employees makes a project design mistake that results in increased costs and project delays, your professional liability insurance may provide coverage for your legal fees in the event that the client sues you. However, coverage for contractors may not always be included, so it's important to review your policy documents carefully to determine the extent of your coverage.

Is Professional Liability insurance legally required?

Although it is not mandatory by law, some clients may require professionals who work on high-cost projects to have professional liability insurance. This requirement is because professional liability insurance provides financial protection in case of a lawsuit or claims of negligence or error.

Can I add Professional Liability if I already have General Liability insurance or other coverage?

Adding a professional liability policy to your existing insurance package with GravySpoon can make you eligible for up to a 10% discount. You can conveniently add professional liability insurance to your coverage by accessing your customer account.

Do you offer prior acts coverage?

The availability of prior acts coverage depends on the type of business and its operations. In some instances, GravySpoon may offer prior acts coverage to businesses that have had consistent professional liability coverage at comparable or higher limits since the retroactive date requested.

Can I add an additional insured to my Professional Liability policy?

Adding an additional insured and sharing the certificate of insurance is a straightforward process for GravySpoon customers. An additional insured is any person or company named on your certificate of insurance, and they can be easily added to your policy through your customer account. This feature enables you to share your certificate of insurance with your additional insured parties as well.

Will my premium change or my policy be canceled if I file a claim?

During the active policy term, we will not change your premium or terminate your coverage because of a claim. We recognize that filing a claim is already stressful, and we do not want to add to your burden by changing your premium.

However, at the end of your policy term, we will evaluate your business and claims history to determine if any changes have occurred since you first applied. Based on these factors, we may adjust your premium up or down.

How do I file a Professional Liability claim?

If you are a GravySpoon customer, you can file a claim with your account online.

After we receive your claim, we will call you to get additional details. You are also welcome to call us to report a claim: 000-000-000.

If you are not a GravySpoon customer, you can report a claim in our help center or call us.

It is important to file professional liability claims as soon as possible.

Get customized insurance wherever you do business

Learn more about general liability insurance options in the state where you work.

Get customized insurance wherever you do business

Learn more about general liability insurance options in the state where you work.

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Let’s find the coverage you need for your business.

Business insurance is divided into different policies. We offer 7 types so it's easy to design the coverage that fits your business.

General Liability

Accidentally damaged customer property? General liability insurance makes those uh-oh moments okay by covering a wide range of incidents and basic risks. Contractors and cleaners can add tools and equipment coverage to protect their gear, as well.

Worker's Compensation

If you have employees, workers’ comp is mandatory in almost every state to help cover medical bills and lost wages if a workplace accident occurs. And don’t forget about the boss — add business owner’s coverage to protect yourself as well.

Professional Liability/E&O

If you’re accused of making an error at work, we’ve got your back. Get professional liability insurance (also known as errors & omissions insurance) and you’ll be protected from certain types of lawsuits and claims.

Commercial Auto

Vehicle-related damage shouldn’t mean you have to pump the brakes on your bottom line. With commercial auto, you’re covered for dents, tows and damage to someone else’s car or truck. Add HNOA coverage for extra protection on rentals and employee vehicles.

Tools & Equipment

Add a tools and equipment upgrade to your general liability insurance. If your gear ever gets damaged or stolen, we’ll be there to abracadabra them back in a flash.

Commercial Property

Commercial property insurance isn’t just for buildings — it can protect almost all the gear, inventory and equipment you need to do business. We'll make sure your lights stay on if a fire, water damage or other covered event causes an interruption to your business.

Business Owner's Policy

A business owner’s policy (BOP) combines general liability and commercial property into one handy package. It’s a great option for protecting your business if you have a physical location, equipment or inventory and if you deal with customers or the public.

NEED A FAST

CERTIFICATE

OF INSURANCE?

Let’s find the coverage you need for your business.

Business insurance is divided into different policies. We offer 7

types so it's easy to design the coverage that fits your business.

General Liability

Worker's Compensation

Professional Liability/E&O

Commercial Auto

Accidentally damaged customer property? General liability insurance makes those uh-oh moments okay by covering a wide range of incidents and basic risks. Contractors and cleaners can add tools and equipment coverage to protect their gear, as well.

If you have employees, workers’ comp is mandatory in almost every state to help cover medical bills and lost wages if a workplace accident occurs. And don’t forget about the boss — add business owner’s coverage to protect yourself as well.

If you’re accused of making an error at work, we’ve got your back. Get professional liability insurance (also known as errors & omissions insurance) and you’ll be protected from certain types of lawsuits and claims.

Vehicle-related damage shouldn’t mean you have to pump the brakes on your bottom line. With commercial auto, you’re covered for dents, tows and damage to someone else’s car or truck. Add HNOA coverage for extra protection on rentals and employee vehicles.

Tools & Equipment

Commercial Property

Business Owner's Policy

Add a tools and equipment upgrade to your general liability insurance. If your gear ever gets damaged or stolen, we’ll be there to abracadabra them back in a flash.

Commercial property insurance isn’t just for buildings — it can protect almost all the gear, inventory and equipment you need to do business. We'll make sure your lights stay on if a fire, water damage or other covered event causes an interruption to your business.

A business owner’s policy (BOP) combines general liability and commercial property into one handy package. It’s a great option for protecting your business if you have a physical location, equipment or inventory and if you deal with customers or the public.

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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Gravy Spoon Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

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