Professional Liability, also known as "Errors & Omissions" or "Malpractice" is purchased by professionals, such as architects, engineers, attorneys, doctors, accountants and other licensed professionals. This coverage pays for claims arising out of the negligence, errors or omissions by the professional, related to his/her professional services and advice. The claims could be for bodily injury, property damage, economic losses, consequential damages and legal fees and expenses. It is important to remember that the insurance carrier also has the duty to defend the professional, even if the claim turns out to be frivolous, false or groundless. In some instances, just the legal fees to defend the professional could be enormous.

It should be noted that unlike most "General Liability" policies, which are written on "Occurrence" basis, "Professional Liability" policies are normally written on "Claims Made and Reported" basis. These policies cover only those claims made and reported during the policy period. An "extended" reporting period may be offered by the policy or purchased by the insured.

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