What is professional liability insurance?
Professional liability insurance, also known as Errors and Omissions (E&O Insurance), is a type of insurance that protects a business against claims initiated by their clients of negligence, copyright infringement, personal injury, etc. These types of claims are not covered under business liability insurance, so it’s important to understand the importance of professional liability insurance.
Examples of scenarios that would be covered under professional liability include:
• You’re a contractor and your client has changed design plans many times where it became confusing and you mistakenly built the wrong dimensions.
• You’re an acupuncturist and your client claims you caused nerve damage.