What is the difference between professional indemnity insurance and professional liability insurance?

Professional indemnity insurance and professional liability insurance are both types of insurance policies that protect professional businesses from claims of malpractice, negligence, and errors. The key difference between the two is in the scope of coverage. Professional indemnity insurance, also known as errors and omissions insurance, covers businesses for negligence and errors that may cause financial loss to a third party. This type of insurance may also cover legal costs and damages that result from civil lawsuits. On the other hand, professional liability insurance is a broader form of insurance that covers the insured party for any liability arising out of the performance of their professional duties, including malpractice. This type of insurance usually covers the cost of defending the insured against any claim or lawsuit and can also protect against judgments and settlements. In regards to Montana, professional liability laws are enforced by the Montana Department of Labor and Industry. Professional liability laws protect consumers from professional negligence, malpractice, and mistakes. The laws in Montana require certain professionals to have professional liability insurance to protect their clients from potential losses and damages.

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What is the difference between professional indemnity insurance and professional liability insurance?

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