Professional Liability Insurance

Table of Contents

Do you offer services or advice to clients as part of your business? Then you need professional liability insurance to protect yourself from claims related to errors, omissions, or negligence. Learn more about how your business can benefit from professional liability coverage today!

Continue reading to learn more, or get covered today by selecting your industry below.

What Is Professional Liability Insurance?

Professional liability insurance is a type of coverage that protects business owners and professionals against financial losses arising from errors, omissions, mistakes, or negligence in their professional services. This coverage is also known as errors and omissions (E&O) insurance.

Is It Required By Law?

Professional liability is not typically required by law, but is highly recommended for anyone who provides a service or advises clients due to the risk of lawsuits.

What Does Professional Liability Insurance Cover?

Professional liability insurance covers a variety of third-party claims and expenses related to the services you offer, including:

  • Errors and omissions: Mistakes in your work or services that cause financial harm to another person
  • Inaccurate advice: Claims arising from advice that caused harm to someone
  • Legal defense costs: Attorney’s fees, court costs, and other expenses associated with defending a lawsuit against you or your company
  • Negligence: Claims brought against you due to carelessness or lack of reasonable care in your professional services
  • Misrepresentation: Damages arising out of false or misleading information you provided to your clients

What It Doesn’t Cover

Most professional liability policies exclude these claims:

  • Bodily injury and property damage
  • Deliberate misconduct
  • Fraudulent activities
  • Intentional acts
  • Governmental fines and penalties
  • Cyber breaches
  • Dishonest acts
  • Claims you were aware of about before the policy began

Professional liability coverage, limitations, and exclusions may vary from one insurance company to the next, so review your policy to determine exact coverages and exclusions.

Real Examples of Professional Liability Insurance Claim

A teacher was sued for giving a student a failing grade after missing a school performance. The suit alleged that the teacher violated the student’s religious beliefs by requiring attendance. The teacher was found not liable but still accrued thousands of dollars in defense costs ($25,000+).

A personal trainer in Nevada was sued by one of their clients who claimed that they tore a muscle performing an exercise at the trainer’s direction ($9,812).

A music instructor was sued by a student’s parents when the student fell off a stage during a recital. The parents claimed the teacher was negligent and did not properly supervise the student while they were on stage ($15,000).

Claim examples are based on internal and external data and research. All policies have conditions, limitations, and exclusions. Please read the policy for exact verbiage. Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.

How Much Does Professional Liability Insurance Cost?

Professional liability insurance coverage is included in many of our base policies alongside general liability insurance. On average, our policyholders pay $20 a month for a base policy, though your premium may differ depending on these factors:

  • Annual revenue: Businesses that make more money per year are exposed to more risks and need higher limits than smaller businesses.
  • Claims history: Having a history of filing insurance claims indicates that your business is vulnerable to risks.
  • Business size: Bigger businesses typically offer more services than smaller businesses, meaning they face more risks.
  • Industry: Depending on your line of work, you may be more or less susceptible to claim incidents than other professionals or business owners.

Additional Coverage You May Need

Most business owners need to extend their coverage beyond general liability insurance to properly protect themselves from the claims they’re most likely to face. Insurance Canopy offers several options for additional coverage, including:

Who Should Carry Professional Liability Insurance?

Any business that provides expert advice, information, or knowledge-based services needs professional liability insurance. Professionals who need this coverage include but are not limited to:

  • Software developers
  • Consultants
  • Accountants and tax professionals
  • Media and content producers
  • Graphic designers
  • Insurance agents
  • Marketing agencies
  • Real estate agents
  • Technology professionals
  • Educators
  • Personal trainers & fitness instructors

How to Get Your Free Quote

With Insurance Canopy, you can get a free quote that includes professional liability coverage in 10 minutes or less! Many of our base policies include both general liability and professional liability insurance, making it easy to get the coverage you need under one policy.

Simply follow these steps to get your free quote today:

  1. Select your industry
  2. Begin your application
  3. Provide information about you and your business in the required fields and receive your quote!

If your industry’s base policy doesn’t include professional liability insurance and you need this coverage, we can help! Give us a call at 844.520.6993 and a licensed, U.S.-based non-commission customer service agent will assist you.

Why Small Businesses Love Insurance Canopy

Insurance Canopy offers affordable policies to a wide variety of businesses and professionals without skimping on coverage. Our A+ rated policies can be customized to meet your unique needs. Check out what our customers have to say about us!

  • TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.

    Tenisha J. Avatar Tenisha J.
    February 4, 2025

    Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.

    Ed Levitt Avatar Ed Levitt
    February 3, 2025

    As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More

    Kristie Williams Avatar Kristie Williams
    January 30, 2025
  • This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.

    Tony Felix Avatar Tony Felix
    January 23, 2025

    Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.

    John B Avatar John B
    January 16, 2025

    I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More

    jay gedeon Avatar jay gedeon
    January 6, 2025
  • Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More

    Ana Zavala Avatar Ana Zavala
    January 6, 2025

    I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More

    Susan Tedesco Avatar Susan Tedesco
    January 6, 2025

    Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More

    Steve Bryant Avatar Steve Bryant
    January 6, 2025
  • Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More

    Chad Laibly Avatar Chad Laibly
    January 6, 2025

    Great and affordable insurance

    Peter DAntoni Avatar Peter DAntoni
    December 6, 2024

    Being a caricaturist, I never understood why I needed liability insurance, but it got to that point where I was missing opportunities because of it. So, I researched a bit... Read More

    Paul McNeilly Avatar Paul McNeilly
    November 12, 2024
  • I’m just saying that is easy to get the vendors insurance with this company

    Silvia Delgado Avatar Silvia Delgado
    November 6, 2024

    Definitely a great asset to my business, I have never had a problem getting what I need from IC. Good communication skills, always get help from the agents, attenuative on... Read More

    Robert Avila Avatar Robert Avila
    November 6, 2024

    Your site was extremely easy to use, I was able to get my event insured for what the event planners wanted. The price was so affordable. Even chatting... Read More

    Rebecca Ruby Avatar Rebecca Ruby
    November 6, 2024
  • Quick easy sign-up convince is great

    Vincent Davanzo Avatar Vincent Davanzo
    November 6, 2024

    Great to work with. Always available for assistance.

    Two Pour Girls Bartending Avatar Two Pour Girls Bartending
    November 6, 2024

    Best customer service I have ever had in regards to insurance.

    Edward Findley Avatar Edward Findley
    November 5, 2024
  • Super easy and convenient. Just renewed, thanks.

    Wendy Berg Avatar Wendy Berg
    November 3, 2024

    Great to work with. Always available for assistance.

    Courtney Araneo Avatar Courtney Araneo
    November 3, 2024

    This is only the second year I have had this insurance. Haven't had to use it. But it's nice to know i have it. The price is great too

    Vickie Sundgren Avatar Vickie Sundgren
    November 3, 2024
  • Canopy insurance has been great for my business. Definitely a five star definitely recommend it..

    Fernando Ferreira Avatar Fernando Ferreira
    October 12, 2024

    Very easy and straight forward experience! The agent and live chat were instrumental in acquiring my policy.

    Jacob Smith Jr Avatar Jacob Smith Jr
    October 7, 2024

    Rey was amazing. So easy! So fast!

    Herman Koch Avatar Herman Koch
    September 30, 2024
  • Always treated well. They take care of my business insurance and I don’t have to worry about anything with insurance canopy in my corner. 10 year customer.

    Mark Paquin Avatar Mark Paquin
    September 14, 2024

    Excellent rates and coverage! Did a lot of homework before going with Insurance Canopy, by far the best bang for the buck 🙂

    Alana Wyld Avatar Alana Wyld
    September 14, 2024

    She is positive and friendly !

    Alan Dynin Avatar Alan Dynin
    September 14, 2024
  • Had a great experience obtaining a policy quickly for a solo musical act. After a year, modified my policy to a fully staffed production easily using the chat feature of... Read More

    Paul Tolle Avatar Paul Tolle
    September 6, 2024

    I am a professional mobile DJ. I use Insurance Canopy for a policy to cover my equipment and liability. They are easy to do business and the website makes... Read More

    Don Kirby Avatar Don Kirby
    September 6, 2024

    Best price I have found! Excited to be a customer

    Dustin Price Avatar Dustin Price
    September 6, 2024
  • TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.

    Tenisha J. Avatar Tenisha J.
    February 4, 2025
  • Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.

    Ed Levitt Avatar Ed Levitt
    February 3, 2025
  • As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More

    Kristie Williams Avatar Kristie Williams
    January 30, 2025
  • This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.

    Tony Felix Avatar Tony Felix
    January 23, 2025
  • Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.

    John B Avatar John B
    January 16, 2025
  • I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More

    jay gedeon Avatar jay gedeon
    January 6, 2025
  • Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More

    Ana Zavala Avatar Ana Zavala
    January 6, 2025
  • I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More

    Susan Tedesco Avatar Susan Tedesco
    January 6, 2025
  • Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More

    Chad Laibly Avatar Chad Laibly
    January 6, 2025
  • Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More

    Steve Bryant Avatar Steve Bryant
    January 6, 2025

FAQs About Professional Liability Insurance

Professional liability coverage is designed to cover third-party claims arising from your business errors, omissions, mistakes, or negligence.

Below are a few examples of what these claims may look like:

  • A tax preparer made a calculation error that caused the client to pay a penalty.
  • A marketing consultant’s advice was based on faulty data, causing their client to lose money on their product or services.
  • An interior designer used the wrong colors and the client sued for breach of contract.

Discussing your business operations and services with a licensed agent is the best way to ensure you have the right coverage for your business. They can identify your biggest risk factors and match you with the best policy.

Make sure to:

  • Find a reputable carrier: AM Best is a credit rating agency specializing in rating the financial strength of insurance carriers. Look for insurance carriers with an “A” rating or higher. For example, Insurance Canopy holds an A+ rating from AM Best.
  • Understand that the cheapest policy may not be the best: Some insurance companies offer lower premiums because they reduce the amount of coverage included in their policy. Before purchasing, review the coverages and exclusions to ensure it meets the needs of your business.
  • Review policy limits: Choose the amount of coverage that matches your risk level and potential losses. Many professionals prefer a $1,000,000 coverage limit, but you may need higher limits depending on risk exposures and annual revenue.
  • Know the type of policy you’re purchasing: Professional liability policies can be written on an occurrence form or a claims-made form. Each has different rules surrounding which claims can be covered depending on when the incident occurred or was reported.

You can file a claim for your Insurance Canopy policy entirely online! Just follow these steps:

  1. Log in to your user dashboard
  2. Go to the “Manage Policies” section and select “File a Claim”
  3. Complete each of the fields with information about your claim and submit

A claims adjustor will reach out to you afterward to guide you through the rest of the claim process.

Picture of <span style="font-weight: 600; font-family: open sans; font-size:14px;">Written By:</span><br>Chris Van Leeuwen | VP of Agency Development
Written By:
Chris Van Leeuwen | VP of Agency Development

Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.

Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.

Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.

Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.

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