What is the purpose of professional liability insurance?

Professional liability insurance is an important form of protection for professionals in Washington. It is designed to help protect individuals and organizations from losses due to errors and omissions in the provision of professional services or advice. In other words, it helps protect professionals from being sued for mistakes made while providing services. For example, a professional whose job entails providing financial advice may have a financial advisor professional liability policy which helps protect the advisor from claims of negligence or mismanagement of a client’s funds. Similarly, a professional technician who provides technical services may have a professional liability insurance policy to help protect them from customer claims of negligence in their work. The purpose of professional liability insurance is to provide a cushion against potential lawsuits and other costly legal issues that could arise as a result of providing professional services. It helps to ensure that if a mistake is made or advice given that has a negative impact, the professional responsible will not be financially responsible for all the losses incurred. Additionally, it gives the professional peace of mind knowing that they are legally covered should a client file a claim because of their services.

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What is the purpose of professional liability insurance?

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