Also called Professional Indemnity Insurance, it protects professional practitioners such as architects, quantity surveyors, home inspectors, lawyers, physicians and accountants against potential negligence claims made by their patients/clients.
Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called Medical Malpractice. Public Notaries may take out errors and omissions insurance (E&O).
Other potential E&O policy holders include, for example, real estate brokers, appraisers, and website developers. There are also specific E&O policies for technology companies, such as software developers, technology consultants and other creators of technology.
This coverage focuses on the failure to perform, financial loss and error or omission of the products or services sold.
Additional coverage for breach of warranty, intellectual property, personal injury, security and cost of contract can be added.