Professional Liability — Insurance Claims Definition
Liability
Coverage for financial loss to others caused by negligent acts, errors, or omissions in professional services.
Professional liability (malpractice for medical, E&O for many fields) covers economic harm from faulty advice or service, not usually bodily injury (which may fall under GL exclusions for professional services). It is typically claims-made.
Examples
An architect's flawed plans delay a project and cause extra costs; the owner sues for economic loss — E&O responds.
Common Mistakes
Relying on GL for professional mistakes — GL excludes professional services. Letting claims-made coverage lapse without tail.
