• Nottingham Insurance

What Is Professional Liability Insurance?

Even experts make mistakes every now and then, and it is extremely important for them to be properly covered when they do. This is where professional liability, sometimes referred to as errors & omissions, insurance comes into play.

Professional liability insurance helps cover professionals and their companies from mistakes that cost their clients a financial loss. These mistakes result from:

  • Negligence

  • Misrepresentation

  • Inaccurate information/advice

Even if the company did not make a mistake, if the client believes you made a mistake, they can still sue for compensation. And if that company does not have professional liability, they will have to pay for legal defense out of pocket.


It is important to recognize that professional liability does not cover certain losses:

  • Bodily injury or property damage (covered by general liability insurance)

  • Work-related injuries (covered by workers' compensation insurance)

  • Data breach (covered by cybersecurity insurance)

Professional liability insurance is typically written on a claims-made basis. This means that a company is covered only for incidents that happen on or after the retroactive date. Claims must be filed within a certain time after the policy expires, typically 30-60 days (but this period can be extended for an additional cost).

Let Nottingham Insurance be there for you when life happens. Call us at (609)587-1600 or email us at info@nottins.com.