Professional Liability Insurance


Professional Liability insurance protects those individuals and companies who are providing professional advice and services from the full cost of defense in the event of a negligence claim.  The majority of policies will cover defense costs even if the legal action is found to be groundless.  Criminal prosecution is not included, nor are all forms of legal liability covered under civil law.


This type of insurance is not to be confused with Comprehensive General Liability, or CGL, as they offer two very different types of coverage and have very specific requirements.  Many self employed individuals require both policies.


A typical CGL policy provides coverage for bodily injury, property damage, personal injury and advertising injury.  For example, if a contractor hits a water pipe and causes water damage while working on a client’s home, the policy will respond.  Or if a person wanders onto a building construction site and gets hurt, the policy would provide coverage.


Professional Liability insurance, on the other hand, insures the client for damages caused by their accidental or negligent acts in the performance of their regular duties.  Any self employed occupation where failure to perform could result in a financial loss needs this type of coverage. In some cases, such as the medical profession, this coverage (known as Malpractice Insurance) is required by law.


Some of the common professions that require Professional Liability, which is also known as Errors & Omissions Insurance, are:

  • Consultants
  • Lawyers
  • Agents and Brokers
  • Accountants
  • Engineers
  • Construction companies
  • Charities
  • Non-profit organizations


For more information on Professional Liability Insurance, or to obtain a quote, please contact our Office and one of our Commercial Brokers would be happy to assist you!


Thank you,

The Costen & Associates Team