Learn more about professional liability insurance with some of the most frequently asked questions we get about our coverage.
If you have more questions, our licensed, U.S.-based insurance advisors are ready to help.
When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase insurance within a few minutes.
Although they go by different names, professional liability and errors and omissions (E&O) insurance provide the same coverage. They both help protect you when you’re accused of doing an incorrect or bad job.
Here are some instances in which you might need professional liability insurance for your business:
Your professional liability policy covers your employees but only for the services they deliver for your business.
For example, if you own an architecture firm and one of your employees makes a measurement mistake in a client’s blueprints, causing project costs and timelines to double, your professional liability insurance would help cover your legal fees if the client sues.
Your contractors may be covered but it depends on the details of your specific policy. Check the “Who is an insured” section of the “Definitions” part of your policy to make sure.
Professional liability insurance is typically not required by law but there are some variations depending on what state you live in and what industry you’re in.
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.
If you’re unsure if it’s a legal requirement in your state, you can call one of our U.S.-based, licensed insurance professionals at 855-222-5919 or email us at firstname.lastname@example.org to help determine the type and amount of coverage you need.
Yes, we offer up to a 10% discount when you add a professional liability policy to your general liability insurance policy or any other existing policy.
Professional liability insurance is designed to provide coverage for your mistakes, even if you are at fault. Unintentional negligence, or honest mistakes on your part, is why this type of coverage exists.
Note: You will not be covered for intentional or criminal acts.
Depending on your industry, 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.
This means that if you first report a claim related to negligent acts in the past, you can still receive coverage from NEXT.
All NEXT policies include the ability to automatically add an additional insured.
If you have a contract in place with another person or company requiring you to list them as an additional insured on your insurance policy, they are automatically covered under your NEXT policy.
Depending on your industry, you can also add a specific person or company to your certificate of insurance by clicking “Share proof of insurance” from your online customer account.
You’ll be asked if you need general proof of insurance or one with a venue or client as additional insured. As soon as you input the details of the additional insured, you can add their email address and we’ll send them over the certificate for you.
Any person or company that you add to your policy is referred to as an additional insured. They are named on your certificate, and only have a certificate if you send them either a physical or electronic copy of the certificate.
No, we won’t alter your premium during the term of an active policy or cancel your coverage due to a claim. We understand that filing a claim is stressful enough without having to worry about it affecting your premium.
At the end of your policy period, however, we will review the details of your business and claims activity. If either has changed since you first applied, we’ll adjust the premium up or down.
If you are a NEXT customer, you can file a claim with your account online.
After we receive your claim, we will call you to get additional details. You are also welcome to call us to report a claim: 855-222-5919.
If you are not a NEXT customer, you can report a claim in our help center or call us.
It is important to file professional liability claims as soon as possible.