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Professional Liability Insurance

Professional liability insurance is a form of liability insurance that protects professionals from damages arising out of the rendering or failure to render a professional service. The commercial general liability policy excludes liability for bodily injury or property damage arising out of the rendering or failure to render a professional service. Professional liability insurance is required by law in some areas for certain kinds of professional practice (especially medical and legal), and is also sometimes required under contract by other businesses that are the beneficiaries of the advice or service. Professional liability insurance may take on different forms and names depending on the profession. For example, in reference to medical professions it is called malpractice insurance, while errors and omissions (E&O) insurance is used by consultants, brokers and lawyers. Some charities and other nonprofits/NGOs are also professional-liability insured.

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