Professional liability covers claims that your professional services caused a client financial loss, including the cost to defend you even when the claim is unfounded. It does not cover bodily injury or property damage, which is general liability, and it is almost always written on a claims-made basis.
What professional liability covers
The policy responds when a client alleges your work fell short and cost them money: a missed filing, a flawed design, negligent advice, or a service that did not perform as promised. It pays defense costs and any settlement or judgment up to your limit. Because professional disputes are often about money rather than physical harm, this is the coverage that meets the actual way service businesses get sued.
Who needs it
Any business paid for its expertise or advice should carry it: accountants, consultants, technology firms, designers, engineers, real estate professionals, and many others. Clients increasingly require it by contract before they will hire you. If your work product, recommendation, or service could cause a client to lose money if it is wrong, professional liability is the coverage that stands behind that risk.
How claims-made policies work
Most professional liability is written claims-made, which means the policy must be in force both when the work was done and when the claim is filed. This makes two things critical: the retroactive date, which sets how far back your past work is covered, and continuity, because a gap can wipe out coverage for years of prior work. When you change carriers or close the business, tail coverage extends the reporting window. These mechanics are where coverage is quietly won or lost, and where guidance matters most.
How we handle it
We set the limit to your contracts and the size of the engagements you take on. We protect your retroactive date when we move carriers so your past work stays covered. We explain the claims-made mechanics in plain language and flag when tail coverage is needed. And we coordinate professional liability with your general liability and cyber so a single incident does not fall between policies.
