Professional liability insurance, also known as the Professional Indemnity Insurance, provides coverage to professional individuals such as accounts, lawyers, architects, doctors, pharmacists and nurses against any negligence claims made by their respective clients or patients. Depending on the profession of an individual, the Professional Liability Insurance takes on different names. For example, the Professional Liability Insurance for the notary public is called the Errors and Omissions Insurance (E&O). The Errors and Omission Insurance policies also provide coverage to the technological companies such as the technology consultants, technology creators and software developers. The chief coverage provided by the E&O policies is the financial loss of the client, failure to perform, breach of warranty and personal injury.
A normal general liability insurance plan will provide coverage to the claims such as property damage, advertising injury, personal injury or bodily injury whereas a Professional Liability Insurance not only covers all the aforementioned claims but also claims such as the violation of good fair and faith dealing, inaccurate advice, misinterpretation and negligence. However, the Professional Liability Insurance covers the incidents that took place when the insurance coverage is active.