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Professional liability, also called errors and omissions insurance, provides an additional level of insurance. It’s designed for those in professions such as law, accounting, real estate and other areas. It covers a business when a client alleged that your services or advice caused financial losses due to your mistake or failure to deliver a service.
These policies help protect companies against liability claims that specifically result in financial losses. For property damage and bodily injury claims, a business’s general liability policy usually covers these areas.
Professional liability insurance protects your business from claims that your actual or alleged errors caused financial harm to your clients.