What is professional liability insurance?

What is professional liability insurance?

Clients consult with professionals for their expertise. For example, a client visiting their accountant relies on the accountant’s expertise to correctly file their taxes or declare certain items.

Professionals therefore have a legal duty to act in the best interest of their clients and to perform their duties with a certain standard of care.

Professional Liability insurance is designed to protect professionals from costs arising from lawsuits alleging that they’ve failed to property render professional services or were acting negligently.

This type of insurance pays for any damages awarded against you should you lose in court, as well as for any supplementary expenses involved in your defense.

These expenses include any court costs assessed against you, defense fees, and even lost wages if you need to take time off work to appear in court.