Professional Liability

What is professional liability insurance?

Professional liability insurance provides protection for business mistakes and the possible dissatisfaction of your clients and customers. 

Many small business owners prioritize obtaining professional liability insurance, also known as errors and omissions (E&O) or indemnity insurance, for a reason. This type of business insurance safeguards your company from financial losses if a client sues you for negligence or professional errors.

What does professional liability insurance cover?

Negligence or oversight
Inaccurate advice
Missed deadlines


Professional liability insurance actively shields your small business from financial losses if a client sues for negligence, errors, or omissions during your professional services.

What is not covered by professional liability insurance?

  • Intentional actions
  • Physical injury to customers
  • Damage to others’ property
  • Injury to your own employees

General liability insurance covers property damage or bodily injury. If you are involved in intentional wrongdoing, like deliberately causing harm or misleading a client, professional liability insurance will not be a defense.

Who needs professional liability insurance?

If your expertise and skill is your business, then this coverage is for you. For businesses that provide professional services or offer advice, professional liability insurance is one of the most important insurance coverages to consider.

Why do you need professional liability insurance?

There are several reasons why your small business might need professional liability insurance. Professional liability insurance protects your assets if your small business is sued. Without it, you could face bankruptcy. Some states, even require professional liability insurance to maintain business licenses.

Get a professional liability insurance quote!

Your Gild Insurance Agent is here for you. Your Agent will make sure you get the right business insurance for your business. For a free, online quote, try out Gildber! Gildber will compare professional liability providers. Offering you a fast, hassle-free option for an online business insurance quote!

For more, visit our Professional Liability Insurance FAQs and blog, The Gildfitter.