Professional Liability Insurance
Securing comprehensive coverage for professional liability insurance is made easy with G&G Insurance, which provides tailored solutions to protect professionals from potential risks and liabilities.
What is Professional Liability Insurance?
By definition, professional liability insurance is a classification of general business insurance that protects professionals and companies against negligence claims from customers and clients. It also extends to personal injury, infringement of copyright, cyber liability, and much more. Sometimes, it is also referenced by the term errors and omissions (E&O) insurance.
The claims covered by such policies can include many damages beyond what you can reasonably foresee.
Why Do I Need Professional Liability Insurance?
Professional liability insurance helps protect your business when a client claims that your professional services caused them financial harm. It can provide coverage for certain legal defense costs, settlements, or judgments related to covered claims arising from the professional services or advice you provide.
Even experienced professionals can face disputes or claims from clients. Whether you’re a consultant, contractor, accountant, or another service-based professional, having professional liability insurance can provide an important layer of financial protection and help your business continue operating with confidence if a covered claim occurs.
What Does Professional Liability Insurance Cover?
Professional liability insurance protects your business when a client claims you made a mistake, missed something, or failed to deliver a promised service.
Most policies are written on a claims-made basis, which means coverage applies only if the claim is made while the policy is active. These policies also include two important features:
- Retroactive date: This sets how far back coverage applies. Only incidents that occur on or after this date are covered.
- Extended reporting period: This allows you to report claims after the policy ends, usually for 30–60 days, though longer extensions may be available for an additional cost.
To be covered, the incident must come from a covered error or omission that happened after the retroactive date and must be reported within the policy terms.
Coverage typically includes legal defense costs, settlements or judgments, disciplinary proceedings, lost income, and assistance with subpoenas.
Some policies are written on an occurrence basis, which covers incidents that happen during the policy period—even if the claim is filed after the policy has expired.
What Else Is Covered Under Professional Liability Insurance?
Several of the more specific elements covered by PLI include work oversights and mistakes, undelivered products or services, and a failure to meet particular deadlines.
Often, even the smallest mistake can cause a client to lose significant amounts of money. When they pursue legal action against your business, you’ll turn to insurance to protect yourself.
If your small business overpromises on service and subsequently fails to deliver, clients also have grounds to sue. This is especially true when their bottom line is negatively impacted.
Negligence extends well beyond undelivered services to include missed deadlines. If you, as a professional business, fail to turn over a deliverable by a certain date, it can also pose dire consequences for a client. Late work is also grounds to pursue legal action.
What Is Not Covered By Professional Liability Insurance?
Keep in mind that while professional liability insurance protects against a large array of claims, it doesn’t cover everything that could potentially happen.
For instance, for damages to any property, you’ll need to acquire general liability insurance.
Furthermore, if your employees grow ill or get hurt while working, your business will need to acquire workers’ compensation insurance to help them return to their jobs.
Lastly, data breaches are incredibly common, and in the event your company suffers losses of personally identifiable information (PII), data breach insurance is meant to solve this problem.
How Much Does Professional Liability Insurance Cost?
The cost of professional liability insurance varies based on your industry, business size, and level of risk. On average, small businesses typically pay between $500 and $3,000 per year, but premiums can be higher for higher-risk professions or larger operations.
Several factors influence the final cost, including the type of services you provide, your experience level, annual revenue, number of clients, claims history, and the coverage limits and deductible you choose.
Because every business is different, the best way to determine your exact cost is to get a customized quote based on your specific services and risk exposure.
What Our Customers Say
With unwavering dedication and a commitment to excellence, we are proudly trusted by over 13,000 clients who rely on G&G Insurance for their coverage needs.
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August 18, 2026
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July 21, 2026 -
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I’ve had the pleasure of working with John Roger’s and his team recently and they have exceeded my expectations. They are full service and have outstanding follow up. They put... read more
August 27, 2026
What Factors Affect the Cost of Professional Liability Insurance?
Professional liability insurance costs vary based on the level of risk associated with your business and how likely you are to face a claim. Key factors that influence your premium include:
Business Type
Higher-risk professions typically pay more than lower-risk ones.
Coverage Limits
Higher policy limits increase protection but also raise premiums.
Deductible Amount
Lower deductibles usually result in higher monthly or annual costs.
Claims History
Past claims can significantly increase your premium.
Location
Areas with higher legal costs or claim frequency often have higher rates.
Business Size
More employees and clients increase exposure to potential errors.
Years in Operation
Newer businesses may pay more due to limited track records.
Insurers may also review your contracts, internal processes, employee training, and prior insurance coverage to assess your level of risk.
Startups or newer businesses often face higher premiums, while established companies with a clean claims history may qualify for lower rates over time. Ultimately, insurers balance your risk exposure with potential claim costs when determining your final price.
Curious about your rates?
G&G Insurance can help you find a quote in no time!
Why Choose G&G Insurance
Choosing the right insurance partner matters just as much as choosing the right coverage. As independent insurance agency we help businesses protect what they’ve built with simple, reliable, and tailored solutions.
Expert guidance: Our team helps you understand your coverage so you can make confident decisions.
Customized protection: Policies are tailored to your industry, risks, and business size—no one-size-fits-all plans.
Multiple carrier options: We compare coverage from 50+ top-rated insurance carriers to find the best fit for your needs and budget.
Easy, stress-free process: From quote to coverage, we keep everything straightforward and efficient.
Professional Liability Insurance FAQs
Q: What is professional liability insurance?
Q: Who needs professional liability insurance?
Q: Does professional liability insurance cover employee mistakes?
Q: How much professional liability insurance do I need?
Q: Is professional liability insurance required by law?
Q: How can I get a quote?
Get Professional Liability Insurance in 3 Simple Steps!
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Online Form: Fill out a simple form on our website anytime—fast and convenient.
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Visit Our Office: Stop by our office to speak with us in person and receive expert advice.
Professional Liability Insurance made simple. We’re here to walk you through every step with clear guidance, honest advice, and support tailored to your business.