A client or customer accuses you of making a mistake that cost them money.
A customer says you didn’t complete a job, project or paperwork on time and wants you to pay for financial losses.
Someone claims your inaction or wrongdoing caused damage to something or someone.
Professional liability insurance (also known as errors and omissions insurance) protects your business against civil lawsuits and negligence claims related to professional mistakes, whether you actually made them or a client just thinks you did.
Many companies sell a stand-alone professional liability policy while others sell it as part of an insurance package with general liability insurance. One advantage of buying both policies together is that you don’t need to worry about whether something should be covered as part of your general liability insurance or part of your professional liability insurance — you just get it covered.
Most businesses need professional liability coverage because it provides protection from unexpected expenses if you are accused of a professional mistake.
Let’s say you’re a plumber installing a sink. You drop your heavy wrench and scratch expensive antique furniture. Most general liability policies would cover that property damage.
Now, say you install the sink with no issue, but a month later the customer says you caused plumbing damage and they have to replace all their bathroom pipes. That’s where professional liability comes in.
If a customer claims you made a mistake — whether you did or not — professional liability coverage can help you move on quickly, avoiding customer confrontations and protecting your reputation.
If you’re ruled at fault for a mistake, missed deadline or professional negligence, Next insurance can help you cover expenses so you don’t have to pay for everything out of pocket. If you’re falsely accused, your coverage can help pay for defense costs.
Professional liability insurance is different for each profession since different businesses have unique risks. For example, you might be:
Whether you’re just starting out or you’re looking for better coverage, Next Insurance offers customized insurance packages at an affordable price.
Start a free quote to explore your options.
While professional liability insurance a variety of situations, most policies will not cover:
False advertising: Professional liability won’t cover you If your marketing materials inadvertently contain misleading information about your product or services and you’re sued for false advertising. For a situation like this, you’ll want general liability insurance.
Property damage or personal injury: Unfortunately, job skills and experience don’t always save people from bad luck. If you drop something that accidentally causes injury or damage to customers, passers-by or property, you’ll want to be covered by general liability.
Employee injuries: If something happens to an employee on the job, workers’ compensation is the protection you’ll need. It can also help cover your medical expenses and lost wages if you are hurt on the job.
Car accidents: If you use a company vehicle and get into an accident, commercial auto insurance can help cover expenses. Add hired and non-owned auto insurance if you use rented vehicles or employees occasionally use personal vehicles for work..
Intentional wrongdoing & illegal activity: If you or one of your employees takes a shortcut that results in damage, neglects to comply with regulations or intentionally engages in bad behavior, you’re out of luck and will most likely need to pay for any related costs out of pocket.
The cost of professional liability insurance depends on the type of work you do and many other factors. With Next, you can rest assured you’re getting customized insurance at an affordable price — all from an insurance company that’s 100% dedicated to you and your small business.
With Next Insurance, you can purchase errors and omissions coverage online and get your certificate of insurance 10 minutes, or less.
Start an instant quote to see options for your business. Here’s how the process works:
We’ll ask you some basic questions about your business and operations, including:
After you share your information, you’ll have instant access to a customized insurance quote for E&O and other recommended coverage.
If you like what you see, you can adjust the package limits and make your purchase. Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance.
Get insurance in less than 10 minutes and save up to 30%
Unique, flexible coverage with easy monthly payments
Do it all 100% online or talk to a licensed U.S.-based advisor
We think you’re pretty awesome — but nobody’s perfect. Professional liability offers peace of mind by protecting you from real or perceived mistakes.Start Now
With Next Insurance, you’ll find tailored coverage to fit your small business needs. Plus, save up to 10% when you sign up for more than one policy. Win-win. (Note: Coverage and discount eligibility varies from state to state.)