Professional Liability Insurance

If you’re shopping for insurance plans for your business, you may have come across the term “professional liability insurance (PLI)” at some point along the way.

What is Professional Liability Insurance?

At a very basic level, it covers you when you didn’t do your job correctly. You’re going to want to have purchased this type of policy – you’re human, and like anyone, you can make mistakes. The smart thing to do is make sure you’ve planned ahead for them. Perhaps you gave some bad advice as a consultant, challenged a student a bit too much as a trainer, or as an architect made some incorrect calculations, which resulted in a lawsuit against your business. If you think you aren’t at risk, ask yourself whether you could cost your client time or money if you were to mess up. Across almost all service industries, the answer is yes.

The best insurance policies are specifically tailored to fit your business

This is more important than ever when it comes to professional liability. Why? This is the insurance that is going to cover you for negligence or errors. Depending on your trade, professional liability insurance coverage may include copyright infringement, defense costs, advertising harm, and more. A doctor has very different types of responsibilities than the aforementioned architect, who in turn has risks that don’t look like the consultant’s. If you purchase a professional liability policy, make sure it lines up with the operations your business performs. In the medical field, PLI would be commonly known as malpractice insurance, while for all other service trades, it is more often referred to as Errors and Omissions coverage.


But I have General Liability coverage. Do I still need PLI?

Professional liability is different than General Liability, which covers bodily injury and physical damage which you are liable, or legally and/or financially responsible, for. There might be some overlap between the policies, like insurance for libel or slander, depending on which policies you choose. It’s important to read through them carefully and understand what instances you are insured for, and where there may be gaps. Try to find policies that complement each other, rather than policies that are too similar.

Where do I buy professional liability insurance?

Many companies will sell a stand-alone professional liability policy. Others sell it as part of a bundle package with other components, such as General Liability or Product Liability. At Next Insurance, Professional Liability is included with our Personal Trainer policies, and it will be an option for other business soon, too!

Let us help you thrive

Get a quote and purchase insurance coverage online within minutes

Get Instant Quote