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Do I Need Professional Liability?

Professional LiabilityAll businesses should carry general liability and products liability.

This coverage protects the business against bodily injury to a 3rd party for unintentional acts or damage to property of a 3rd party.  It provides defense costs to the client as well as a settlement if the client is found to be negligence in causing the bodily injury or property damage.

But sometimes the acts are intentional as part of the work, but the result desired is not obtained or is adverse or the damage is financial, not bodily injury or property damage.  How does a business protect them?  This is where professional liability coverage is the correct coverage. Professional liability protects the business over your job performance.  This is where a client’s customers may actually suffer a loss because of the work done by the clients.

It is also known as: Professional Liability / Mal Practice Liability / Errors & Omissions Liability.

Examples of types of professional liability claims:

  1. Services that do not live up to standards expected
  2. Errors and oversites that cause injury or that do take financial resourses to correct or redo
  3. Engineering services in construction that do not result in the required performance causing construction work to be redone to fix the problem
  4. Missing a deadline causing a client to miss a business opportunity causing financial harm
  5. Financial firm not administering the benefits correctly causing financial harm.
  6. Medical procedure causing unintended or non-anticipated side effects

Some advantages of providing professional liability

  1. Many state licenses require professional liability be carried
  2. Provides a different level of care or professionalism by the business
  3. Opens business opportunities
  4. May be required by contract to obtain a job or a business opportunity

To review your needs for professional liability, contact Ramey King Insurance 800-453-9691 or

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