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Professional liability insurance

Professional Liability Insurance FAQs

Insurance to back you up in a business disagreement

Frequently asked questions about Professional Liability insurance

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.


What are the main differences between Professional Liability and E&O insurance? How do I know which one to choose?

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.

In general, the term professional liability is used when describing insurance covering professional mistakes by accountantsconsultantsengineers and architects.

E&O insurance is used when describing this coverage for professions such as real estate and insurance agents.

Here are some instances in which you might need professional liability insurance for your business:

  • You accidentally specify the wrong material for a project. Your client sues you for the cost of fixing the problem and other financial damages.
  • You are the subject of a complaint filed with a professional association and you need to hire an attorney to defend yourself from potential termination of your membership.
  • Your client discovers that you made critical measurement mistakes in your plans, causing project costs and timelines to double. They sue you for financial losses.


Does Professional Liability insurance cover my subcontractors or employees?

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.


Is Professional Liability insurance legally required?

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 to help determine the type and amount of coverage you need.


Can I add Professional Liability insurance as a package deal if I already have General Liability insurance or other coverage?

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.

You can add professional liability insurance directly through your online customer account. Or you can call us at 855-222-5919 or email us at


Will Professional Liability insurance cover me if it’s my fault?

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.


Do you offer prior acts coverage?

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.


Can I add an additional insured to my Professional Liability policy?

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.


Will my premium change or my policy be canceled if I file a claim?

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.


How do I file a Professional Liability claim?

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.