Please ensure Javascript is enabled for purposes of website accessibility When To Get Professional Liability Insurance

When To Get Professional Liability Insurance

Professional liability insurance, also known as error and omissions (E&O) insurance, protects professionals against lawsuits arising from their work. This insurance is designed to cover the costs of legal defense and damages awarded in the event of a lawsuit.

Professional liability insurance is essential for professionals who provide services to clients, as it provides financial protection against claims of negligence, errors, or omissions.

Who Needs Professional Liability Insurance?

Professional Liability Insurance is a vital safeguard for a diverse range of professionals who offer specialized services to clients, ensuring that they are adequately protected against potential legal and financial risks. In an ever-evolving landscape where expertise and guidance hold tremendous value, professionals across various industries, such as doctors, lawyers, accountants, architects, engineers, real estate agents, and many more, bear the weighty responsibility of providing invaluable advice, recommendations, and services to their clients.

Given the diverse range of professionals who rely on their expertise to serve their clients’ needs, Professional Liability Insurance plays a pivotal role in maintaining the integrity of industries as a whole. It fosters an environment where professionals can confidently navigate complex challenges, innovate, and excel in their respective fields, knowing they have a safety net to protect them from the unexpected pitfalls that may arise during the course of their work.

When Is Professional Liability Insurance Required?

1. Contractual Obligations

Many contracts require professionals to carry professional liability insurance as a business condition. For example, a client may require a consultant to have professional liability insurance before entering into a contract. This protects the client if the consultant makes a mistake or fails to meet their obligations under the contract.

2. Regulatory Requirements

Certain professions are required by law to carry professional liability insurance. For example, doctors and lawyers must often carry professional liability insurance as a condition of their licensure. This is because these professions are highly regulated, and mistakes can have serious consequences for clients.

3. Industry Standards

Many industries have established standards for professional liability insurance. For example, the American Institute of Architects requires architects to carry professional liability insurance. This ensures that architects are financially responsible for any mistakes or errors.

4. Peace of Mind

Even if professional liability insurance is not required by law or contract, many professionals carry it for peace of mind. This insurance can provide financial protection in a lawsuit, which can be especially important for small businesses or individual professionals who may not have the resources to cover legal expenses or damages.

Benefits of Professional Liability Insurance

In addition to providing financial protection in the event of a lawsuit, professional liability insurance has many other benefits.

1. Protecting Your Reputation

A lawsuit can damage your reputation, even if you are not found liable. Professional liability insurance can protect your reputation by covering legal defense costs and settling claims before they go to trial.

2. Meeting Client Expectations

Many clients expect professionals to carry professional liability insurance. By carrying this insurance, you can meet client expectations and demonstrate that you are a responsible and trustworthy professional.

3. Access to Legal Resources

Professional liability insurance often provides access to legal resources, including attorneys defending against professional liability claims. This can be invaluable in a lawsuit, as these attorneys can help you navigate the legal system and protect your interests.


Professional liability insurance provides financial protection in the event of a lawsuit and can also help protect your reputation and meet client expectations. While professional liability insurance may not be required in all situations, it is a wise investment for any professional who wants to protect themselves and their business.

Are you looking for professional liability coverage in Conyers, GA? Choose the Tabb Insurance Agency to protect yourself and your business from lawsuits and damages. Our team offers high-quality service and personalized attention to meet your personal and business insurance needs. Contact us today to learn more!