If you work with clients, then you have a responsibility to protect yourself and your clients when things go wrong. Professional liability insurance, also known as Errors & Omissions coverage in some industries, pays for legal fees and damages when a legal claim is made against your company. Some states require professional liability insurance for certain practices, like legal and medical, where coverage is often called malpractice insurance.

In these cases, a client might claim that they suffered financial distress because of the mistake you made (errors) because you failed at performing your service (omissions). Furthermore, professional liability insurance only covers the costs associated with civil lawsuits, it does not cover any damages from criminal charges.


Any professional who works with clients should purchase a professional liability policy.

This includes:

  • Medical professionals

  • Attorneys

  • Real Estate Agents

  • Architects

  • Consultants


Unless written explicitly in a professional liability policy, there are many liabilities under civil law that may not be covered. However, there are claims that are traditionally covered in all professional liability insurance policies, which include:


  • Under civil law, negligence is when a professional failed to provide a reasonable amount of care to his or her client, which resulted in personal injury. For example, if a psychiatrist failed to provide proper medication for psychosis, and the client suffered a damaging episode, that’s negligence.


  • This occurs when the professional is accused of making a false statement of fact in order to obtain the client’s business. For example, if a project manager provides false proof of success with an exaggerated percent of growth, then that’s a misrepresentation.

Violation of Good Faith & Fair Dealing:

  • When you sign a contract with a client, it is implied that you will cooperate with that client to the fullest extent of your abilities and will not hinder your client’s performance by interfering. Doing so is a violation of good faith & fair dealing.

Inaccurate Advice:​

  • Providing inaccurate advice differs from misrepresentation because the advice is usually not stated as fact. However, as a professional, clients rely on you to advise them based on your knowledge of the field. Failure to do so is considered providing inaccurate advice.

Privacy Violations:​

  • Clients expect you to maintain their privacy, and in some professions, it is legally required. Breeching this privacy agreement is considered a privacy violation.

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Above are just some of the special coverages that we can offer in motorcycle insurance policies. If you would like to learn more about what Allstar Insurance can do for you, give us a call or click the button below to get a quote.