Professional Liability Insurance
Do you offer services or advice to clients as part of your business? Then you need professional liability insurance to protect yourself from claims related to errors, omissions, or negligence. Learn more about how your business can benefit from professional liability coverage today!
Continue reading to learn more, or get covered today by selecting your industry below.
What Is Professional Liability Insurance?
Professional liability insurance is a type of small business coverage that protects business owners and professionals against financial losses arising from errors, omissions, mistakes, or negligence in their professional services. This coverage is also known as errors and omissions (E&O) insurance.
Is It Required By Law?
Professional liability is not typically required by law, but is highly recommended for anyone who provides a service or advises clients due to the risk of lawsuits.
What Does Professional Liability Insurance Cover?
Professional liability insurance covers a variety of third-party claims and expenses related to the services you offer, including:
- Errors and omissions: Mistakes in your work or services that cause financial harm to another person
- Inaccurate advice: Claims arising from advice that caused harm to someone
- Legal defense costs: Attorney’s fees, court costs, and other expenses associated with defending a lawsuit against you or your company
- Negligence: Claims brought against you due to carelessness or lack of reasonable care in your professional services
- Misrepresentation: Damages arising out of false or misleading information you provided to your clients
What It Doesn’t Cover
Most professional liability policies exclude these claims:
- Bodily injury and property damage
- Deliberate misconduct
- Fraudulent activities
- Intentional acts
- Governmental fines and penalties
- Cyber breaches
- Dishonest acts
- Claims you were aware of about before the policy began
Professional liability coverage, limitations, and exclusions may vary from one insurance company to the next, so review your policy to determine exact coverages and exclusions.
Real Examples of Professional Liability Insurance Claim
A teacher was sued for giving a student a failing grade after missing a school performance. The suit alleged that the teacher violated the student’s religious beliefs by requiring attendance. The teacher was found not liable but still accrued thousands of dollars in defense costs ($25,000+).
A personal trainer in Nevada was sued by one of their clients who claimed that they tore a muscle performing an exercise at the trainer’s direction ($9,812).
A music instructor was sued by a student’s parents when the student fell off a stage during a recital. The parents claimed the teacher was negligent and did not properly supervise the student while they were on stage ($15,000).
Claim examples are based on internal and external data and research. All policies have conditions, limitations, and exclusions. Please read the policy for exact verbiage. Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.
How Much Does Professional Liability Insurance Cost?
Professional liability insurance coverage is included in many of our base policies alongside general liability insurance. On average, our policyholders pay $20 a month for a base policy, though your premium may differ depending on these factors:
- Annual revenue: Businesses that make more money per year are exposed to more risks and need higher limits than smaller businesses.
- Claims history: Having a history of filing insurance claims indicates that your business is vulnerable to risks.
- Business size: Bigger businesses typically offer more services than smaller businesses, meaning they face more risks.
- Industry: Depending on your line of work, you may be more or less susceptible to claim incidents than other professionals or business owners.
Additional Coverage You May Need
Most business owners need to extend their coverage beyond general liability insurance to properly protect themselves from the claims they’re most likely to face. Insurance Canopy offers several options for additional coverage, including:
Who Should Carry Professional Liability Insurance?
Any business that provides expert advice, information, or knowledge-based services needs professional liability insurance. Professionals who need this coverage include but are not limited to:
- Software developers
- Consultants
- Accountants and tax professionals
- Media and content producers
- Graphic designers
- Insurance agents
- Marketing agencies
- Real estate agents
- Technology professionals
- Educators
- Personal trainers & fitness instructors
How to Get Your Free Quote
With Insurance Canopy, you can get a free quote that includes professional liability coverage in 10 minutes or less! Many of our base policies include both general liability and professional liability insurance, making it easy to get the coverage you need under one policy.
Simply follow these steps to get your free quote today:
- Select your industry
- Begin your application
- Provide information about you and your business in the required fields and receive your quote!
If your industry’s base policy doesn’t include professional liability insurance and you need this coverage, we can help! Give us a call at 844.520.6993 and a licensed, U.S.-based non-commission customer service agent will assist you.
Why Small Businesses Love Insurance Canopy
Insurance Canopy offers affordable policies to a wide variety of businesses and professionals without skimping on coverage. Our A+ rated policies can be customized to meet your unique needs. Check out what our customers have to say about us!
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Thank you so much
Steve Monreal
July 11, 2025I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Very easy to renew policy
Elyce Nissinoff
June 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025I'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew Terry
April 18, 2025For me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly Mulder
April 18, 2025 -
Affordable. Thank you.
Ana Young
April 18, 2025I have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John Corkins
March 18, 2025Canopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧
DjVic Universal Sounds
March 18, 2025 -
I have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice Lapointe
February 18, 2025Great for Event Insurance - most affordable
Gaby Nobrega
February 18, 2025I was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTERO
February 18, 2025 -
TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025
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Thank you so much
July 11, 2025 -
Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025 -
What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025 -
Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025
FAQs About Professional Liability Insurance
What Triggers a Professional Liability Policy?
Professional liability coverage is designed to cover third-party claims arising from your business errors, omissions, mistakes, or negligence.
Below are a few examples of what these claims may look like:
- A tax preparer made a calculation error that caused the client to pay a penalty.
- A marketing consultant’s advice was based on faulty data, causing their client to lose money on their product or services.
- An interior designer used the wrong colors and the client sued for breach of contract.
How Do I Choose the Right Professional Liability Insurance Policy for My Business?
Discussing your business operations and services with a licensed agent is the best way to ensure you have the right coverage for your business. They can identify your biggest risk factors and match you with the best policy.
Make sure to:
- Find a reputable carrier: AM Best is a credit rating agency specializing in rating the financial strength of insurance carriers. Look for insurance carriers with an “A” rating or higher. For example, Insurance Canopy holds an A+ rating from AM Best.
- Understand that the cheapest policy may not be the best: Some insurance companies offer lower premiums because they reduce the amount of coverage included in their policy. Before purchasing, review the coverages and exclusions to ensure it meets the needs of your business.
- Review policy limits: Choose the amount of coverage that matches your risk level and potential losses. Many professionals prefer a $1,000,000 coverage limit, but you may need higher limits depending on risk exposures and annual revenue.
- Know the type of policy you’re purchasing: Professional liability policies can be written on an occurrence form or a claims-made form. Each has different rules surrounding which claims can be covered depending on when the incident occurred or was reported.
How Do I File a Claim on My Professional Liability Insurance Policy?
You can file a claim for your Insurance Canopy policy entirely online! Just follow these steps:
- Log in to your user dashboard
- Go to the “Manage Policies” section and select “File a Claim”
- Complete each of the fields with information about your claim and submit
A claims adjustor will reach out to you afterward to guide you through the rest of the claim process.
Chris Van Leeuwen | VP of Agency Development
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
