Professional liability coverage

Professional liability coverage insures professionals against claims of negligence, errors, or omissions that cause financial harm to clients. Surgeons, architects, and lawyers purchase professional liability coverage to protect themselves from lawsuits stemming from alleged mistakes in their services.

Policies generally cover legal defense costs, judgments, and settlements related to covered claims, as confirmed by YourInsuranceInfo. Limits on professional liability policies typically range from $1 million to $5 million per claim or aggregate, as seen in US standard policies.

Insurers exclude deliberate fraud or criminal acts from professional liability coverage. Premiums for professional liability insurance depend on factors such as profession, annual revenue, and claims history; for example, attorneys in New York may pay between $3,000 and $10,000 annually.

Coverage is usually written on a “claims-made” basis–only claims reported during the policy period are eligible for coverage. Tail coverage extends protection after a policy ends if a claim is filed later; medical practices often buy tail coverage when switching insurers.

Most contracts with hospitals or large corporations require proof of active professional liability coverage as a prerequisite for work. Professional liability insurance does not replace general liability insurance but instead supplements it by covering purely professional risks.