Professional Liability Insurance

Professional liability insurance (PLI), also called professional indemnity or errors & omissions insurance, helps protect small businesses from claims that come from things like mistakes, missed deadlines, or other slip-ups in the services they provide. So, if an error causes financial loss, harm, or reputational damage to a client, PLI could help cover the cost.

Think of professional liability insurance as one piece of your business protection puzzle. Pair it with other coverages like general liability or commercial property insurance, and you’ve got a strong safety net for your business.

For example, you might need it if:

• Your clients rely on your expertise or professional advice.
• Mistakes in your services could lead to financial losses or reputational harm for your clients.
• Miscommunication or errors could result in legal claims brought against you.

Doctors, consultants, lawyers, IT professionals, and real estate agents, to name a few, could all benefit from professional liability insurance. It’s an effective and reliable way to protect your work and reputation, so you can concentrate on doing what you do best without worrying about all those "what ifs".

Many types of businesses can benefit from professional liability insurance. Here’s some real-life examples of when it might apply:

• You're a project manager, and you accidentally forget to tell your client to sign some documents causing project delays that increase the cost.
• You're a massage therapist and your client sues you, claiming you caused an injury.
• You’re a wedding photographer and failed to deliver high-quality images and you’re sued for the distress you caused.

Also, keep in mind that coverage is typically provided on a claims-made basis, which means the claim must be made and reported during the active policy period. It usually only applies to incidents that occurred on or after a specific “retroactive date” listed in your policy. Many people pair professional liability insurance with general liability insurance for more complete coverage.

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• How can I manage my professional liability insurance policy?
  Geico Insurance Agency has made it easy for you to speak directly with an insurance professional who can help you.
• Do I need professional liability insurance?
  You may need professional liability insurance since professional services aren't usually covered by general liability insurance.
• Is errors and omissions (E&O) insurance the same as professional liability?
  Yes, errors and omissions insurance is another name for professional liability insurance. It can help protect business professionals from claims of mistakes in providing their professional services.
• What type of business insurance do I need?
  Whether you're a small business just getting started or a larger, more established business looking for better insurance rates, GEICO can help. Answer a few short questions about your business so we can help narrow down the search for what type of professional liability coverage would be best for your business.
• Will professional liability cover me even if the lawsuit is baseless?
  Yes, professional liability insurance will cover you even if the lawsuit is baseless. This type of insurance is designed to protect you from financial loss related to your business, regardless of the lawsuit's merit.
• Will professional liability (errors and omissions) cover me if I'm at fault?
  Yes, PLI provides coverage for legal defense costs and any settlements or judgments up to the policy limits even if you're at fault.
• Is professional liability insurance legally required?
  Professional liability insurance is not legally required in all industries or regions, but it is highly recommended for professionals who provide services or advice. Some industries, such as legal services, may have specific regulatory requirements mandating this coverage.
• Does professional liability insurance provided through GEICO Insurance Agency cover prior acts?
  Yes, GEICO Insurance Agency offers prior acts professional liability coverage. It can protect you from claims arising from services performed before the policy's start date as long as you have continuous coverage without gaps.
• What does professional liability insurance not cover?
  While coverage varies by policy and provider, professional liability insurance typically doesn't cover intentional acts, general liability, or false advertising.
• What is a certificate of liability insurance and how do I get one?
  A certificate of liability insurance is a document that proves you have active coverage. It includes key policy details like coverage limits and effective dates, and it's often required when signing contracts or working with clients. You can typically request a certificate through your insurance provider or agent.
• Does the policy cover employees and subcontractors?
  Professional liability insurance generally covers claims related to work performed by your employees, but subcontractors may not be included automatically. It’s important to review your policy details or talk to a GEICO insurance specialist to make sure everyone working on your behalf is properly covered.