Frequently asked questions about professional liability insurance

Yes. Even if your business wasn't at fault, a client who believes you caused their financial loss might sue you. Professional liability insurance covers your legal expenses even if the lawsuit never makes it to court.

It takes just a few minutes to complete Insureon’s online application for professional liability insurance. In most cases, we’ll show you quotes as soon as you finish the application.

Once you select and purchase a policy, we’ll email you a certificate of insurance right away. The certificate of insurance is the formal proof of insurance document that you need to show when you apply for professional licenses or sign certain contracts.

The professional liability insurance application requires basic information about your business, including its location, number of employees, and estimated revenue.

When you complete the application, you'll receive quotes from multiple carriers. Look them over and pick the one that works best for you. If you need help or guidance, a licensed Insureon insurance agent is available to assist you throughout the process.

Small businesses with low risks only pay a small premium for professional liability coverage.

Your professional liability insurance policy covers liabilities specific to your business. Your provider will consider your industry, your claims history, and your services to determine an insurance premium. The options you choose – such as deductibles, policy limits, and types of coverage – will also affect your rates.

There are a few strategies you can use to save on your professional liability premium, such as choosing lower policy limits and bundling your policy. You can also consult with an insurance agent on your business insurance needs, including finding affordable liability insurance policies.

Learn more about the factors that influence the cost of professional liability insurance.

As soon as possible. As a "claims-made" policy, professional liability insurance only covers a claim if both the incident and lawsuit happen when the same policy is active. It’s especially important to maintain uninterrupted coverage in states that have lenient statutes of limitations, because years may pass between an incident and the subsequent lawsuit.

Most small business owners purchase a professional liability insurance policy early and maintain the same policy for the life of their business, so there are no gaps in coverage. If you think your business might be exposed, or have let a prior policy lapse, bring it up with your insurance agent. There may be ways to extend your protection.

Our certificates of liability insurance are digital. We can email you one as soon as your policy is activated. You can also access your certificate online by logging into your Insureon account.

Insureon specializes in small business insurance for numerous industries. Our insurance specialists have helped more than 400,000 businesses in multiple industries, including:

It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on an existing policy, and also provide assistance if you need to purchase additional policies.

If you cancel your policy, you run the risk of paying more for coverage later on. Providers usually charge businesses that start and stop coverage higher rates.

Also, canceling a professional liability policy leaves your business exposed to risk. Because it's a "claims-made" policy, it only provides coverage if the incident and the lawsuit happen while the policy is active. In some cases, years can pass before a client decides to sue over an incident.

It’s important to keep your policy active to ensure you’re protected against clients who sue at a later date. Most small business owners keep their professional liability policy in place for the life of their business to prevent gaps in coverage.

To make a professional liability claim, simply call your insurance provider. Your agent will ask you to provide a description of the incident and basic information such as your name, the business name, and your policy number. Your insurance agent can guide you through the process and provide answers to any additional questions.

Professional liability insurance and errors and omissions insurance (E&O) are two names for the same policy. Another term for it is professional indemnity insurance. Different industries use different terms for this policy. It’s also called malpractice insurance in the medical business.

Read more about professional liability vs. errors and omissions insurance.

Tech professional liability insurance and technology errors and omissions insurance (tech E&O) both refer to the same coverage, a specialized bundle for tech professionals. Tech E&O bundles third-party cyber insurance with E&O insurance to protect against mistakes and oversights that lead to a data breach or cyberattack at a client's business.

For example, if an IT consultant forgets to upgrade a client's system to the latest patched version, the client could hold the consultant liable if their system is breached.

Malpractice insurance is a type of professional liability insurance. While the terms are often used interchangeably, they’re not exactly the same. You may need to purchase one or both policies depending on your risks.

Professional liability relates to a healthcare provider’s business activities, while malpractice covers your legal fees and settlement costs if you’re accused of causing a patient’s injury or death.

Read more about professional liability vs. malpractice insurance.

General liability insurance offers protection if a third party sues you over a physical injury, property damage, or an advertising injury (libel or slander). Professional liability insurance covers you if you are sued by a client who claims you made a professional mistake that resulted in financial loss.

Almost every business owner could benefit from general liability insurance. Your type of business will determine if you need a professional liability policy.

Read more about general liability vs. professional liability insurance.