Professional Liability insurance

Professional liability insurance for small businesses is typically not required for most professions. However, it can be required for lawyers in some states. Be sure to check the requirements in your area.

However, if you work on high-cost projects, your clients may require you to carry insurance so you have financial protection in case of a lawsuit. Though this insurance coverage may not be mandatory, it can signal your professionalism and help your business stand out amongst competitors.

You can file a claim anytime online or in the ERGO NEXT app.

You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions as quickly as possible so that you can get back to work.

Learn how to file a claim.

It takes about 10 minutes to get a quote, buy coverage and get access to policy documents and your certificate of insurance (COI).

You can access your documents and COI 24/7 online or in the ERGO NEXT app for iPhone or Android.

If your business provides client services, expert advice or professional recommendations, it’s likely you could benefit from professional liability insurance. Even when you do everything right, a client might still make a legal claim that your work caused them financial harm — and legal costs to defend yourself would come out of your own pocket if you don’t have the business insurance to help shield you from these costs.

This type of insurance can be especially useful for self-employed professionals and business consultants who are paid for their expertise or advice. In some fields, professional liability insurance can be required by law for client contracts.

Yes. ERGO NEXT can give you up to a 10% discount when you add a professional liability policy to your existing coverage.

You can add professional liability insurance directly through your customer account.

Although they go by different names, professional liability and errors and omissions insurance (E&O insurance) can both help protect you if you’re accused of making a professional error that leads to a financial loss for a client.

The name can be different depending on your industry.

• Professional liability coverage is usually the choice for accountants, consultants, engineers and architects.
• Errors & omissions insurance is the professional standard for real estate and insurance agent professionals.

Professional liability coverage can help protect your small business from unexpected costs associated with:

Your business mistakes

You can follow all the rules, do everything right, check your work twice and still make a professional error.

Professional liability insurance can help protect you from paying entirely out-of-pocket if you or your employees are accused of making a professional mistake that causes financial harm to another person or business.

Example: You're a property manager and the property owner claims you made repeated paperwork mistakes for transactions between tenants that cost the property owner $50,000.

The property owner sues you to get reimbursed. Your small business professional liability coverage could help cover some expenses up to the policy limit.

Accusations of professional negligence

Business professionals usually act in the best interest of their clients.

However, you may find yourself accused of occupational negligence — doing or failing to do something that would be in the best interest of your client. If you’re in this position, whether you’re at fault or not, you could be forced to defend yourself if your business actions cause a client a financial loss.

Example: You did nothing wrong, but an angry client takes you to court for professional negligence. The legal battle draws out and the legal fees start piling up.

Your professional liability insurance policy could cover some expenses up to the limits of your policy.

Professional liability insurance coverage can provide help for a variety of situations, but it won’t protect you from all risks. Always check your policy for the full list of exclusions.

Here’s some examples of what professional liability insurance won’t cover:

• Intentional wrongdoing and illegal activity: If you or one of your employees intentionally takes a shortcut that results in damage, neglects to comply with regulations or engages in bad behavior.
• Property damage or bodily injury: General liability insurance can help pay if your business is responsible for causing injury to someone who is not an employee or damaging property that doesn’t belong to you.
• 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. This could be covered by general liability.
• Employee work-related injuries or illnesses: Workers’ compensation insurance can help cover medical expenses and lost wages if an employee is involved in a work-related injury.
• Car accidents: Commercial auto insurance may help cover expenses if you drive for business and get into an accident.

Your professional liability insurance policy can cover your employees, but only for the services they deliver for your business. It also depends on the details of your specific policy. Subcontractors would not likely not be covered.

For example, if you own an architecture firm and one of your employees makes a project design mistake that causes costs and timelines to double, your professional liability insurance could help cover your legal fees if the client sues you.

It depends on your industry and business operations.

In some cases, we may provide prior acts coverage for businesses that have maintained continuous professional liability coverage at similar or higher limits since the requested retroactive date.

Yes, ERGO NEXT customers can easily add an additional insured and share their certificate of insurance through their customer account.

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

Professional Liability vs. General Liability

Professional Liability vs. Errors & Omissions

Liability insurance vs. Commercial Property insurance

Compare other business insurance policies