A client or customer accuses you of making a professional mistake that costs them money.
Someone claims your inaction or wrongdoing caused a financial loss or personal harm.
Someone accuses you of providing inaccurate information with your services.
You need to hire a lawyer to defend your business after you are accused of making a professional mistake.
Professional liability insurance is a type of business insurance that could help cover Maryland business owners if they are held responsible for a professional error or are accused of negligence.
This insurance can help cover:
Professional liability insurance could help cover costs in various situations, whether or not you actually made the professional mistake you are accused of making. For instance:
Another common name for professional liability coverage is E&O or errors and omissions insurance. Maryland business owners may use the terms interchangeably, but typically it depends on their industry.
While professional liability and E&O insurance usually provide the same coverage, E&O is mainly used by insurance agents, real estate agents and property managers. There is also a special contractor’s E&O option for construction professionals.
In most other professions, including finance, engineering and law, this insurance is called professional liability. For example, Baltimore-based legal professionals would search for professional liability insurance for lawyers in Baltimore rather than E&O coverage.
Professional liability insurance is not legally required for most businesses in Maryland. However, business owners in the state may still need this coverage to comply with standards in their industry.
For instance, companies working on state or local government contracts may need professional liability insurance. Maryland healthcare providers may require their employer to have malpractice insurance, a type of professional liability coverage.
Many business owners in Maryland still choose to have professional liability insurance, even when it’s not required, for the following reasons:
Small businesses in Maryland with professional liability insurance may be better financially protected if they make a professional error or are accused of negligence or wrongdoing.
The city or county where you work may require proof of professional liability or E&O coverage for certain business licenses, permits and certifications.
Depending on your industry, clients may request a certificate of insurance before agreeing to work with you. You may risk losing out on high-value projects if you don’t have professional liability insurance.
For instance, the City of Baltimore requires emergency professional services consultants to have professional liability coverage of no less than $1 million to secure a government work contract.1
Some business owners consider professional liability insurance standard coverage, including many consultants, advisors, architects and engineers.
However, businesses operating in various industries can benefit from this type of Maryland business insurance.
Many Maryland small businesses risk of making a mistake that causes financial harm or being accused of professional negligence. Professional liability insurance can help business owners resolve these issues quickly to avoid client confrontations and protect their reputations.
For example, suppose a client sues a Silver Spring financial advisor for making a mistake that led them to lose out on significant tax advantages and pay more than they had to. In that case, professional liability insurance could help fix the error or defend against the accusation.
Or, say a real estate agent in Germantown neglects to list unsafe levels of radon detected on a property in a seller disclosure. Errors and omissions insurance can help cover costs related to correcting mistakes or defending their business.
The cost for professional liability coverage can vary based on a number of factors, including:
NEXT makes getting affordable Maryland professional liability insurance fast and easy. You can apply online in about 10 minutes, and our monthly premiums for this type of business insurance cost $45 or less for 52% of our U.S. customers.**
Learn more about professional liability insurance costs.
NEXT provides professional liability insurance policies for Maryland small business owners and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
General liability insurance can help provide financial protection for common accidents. This coverage can help pay for related costs if someone blames your business for causing a third-party injury or property damage.
Workers’ compensation insurance in Maryland could help cover medical expenses and lost wages if an employee gets injured on the job. Most Maryland employers are required by law to carry workers’ comp insurance.
Commercial auto insurance can help cover related costs such as medical bills and property damage if you or one of your employees is involved in an accident in a company-owned vehicle.
Maryland requires that all vehicles have minimum auto insurance coverage of $30,000 per person, $60,000 per accident and $15,000 for property damage.2
Commercial property insurance can help protect physical business assets such as commercial structures inventory, furniture and business equipment. This insurance can help pay for repairs or replacements if your business property is damaged by fire, wind, vandalism or another covered event.
Learn more about professional liability insurance options in the state where you work.
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.