Professional liability insurance, also known as errors and omissions insurance, is a type of insurance that helps protect professionals from financial loss resulting from claims or lawsuits brought against them for errors or omissions made while performing their duties. This type of insurance is designed to cover damages or injuries that the insured party may be held responsible for as a result of their professional services.
There are several types of professional liability insurance, including:
- Medical malpractice insurance: This covers doctors, nurses, and other healthcare professionals for errors or omissions made while providing medical care.
- Legal malpractice insurance: This covers lawyers for errors or omissions made while providing legal services.
- Architects and engineers insurance: This covers architects and engineers for errors or omissions made while designing or constructing buildings or other structures.
- Directors and officers insurance: This covers the directors and officers of a company for errors or omissions made while performing their duties.
Professional liability insurance is typically purchased by individuals or companies in order to protect their assets and reputation. It is important for professionals to carefully review their insurance policies to understand what is and is not covered by their professional liability insurance.