What does professional liability insurance primarily protect against?

Professional liability insurance is specifically designed to protect professionals from claims related to the services they provide. This type of insurance covers the consequences of failure to perform professional duties, including errors, omissions, and negligence that may arise in the course of delivering professional services. It is essential for fields such as healthcare, legal services, and consulting, where a breach of duty could lead to significant financial damages for clients.

The focus is on the services rendered rather than physical property or products. Therefore, the protection offered is particularly relevant in scenarios where a client claims they suffered a loss due to the professional's actions or lack thereof. This is different from other types of insurance, which may cover property damage, general liabilities, or product-related claims, making professional liability insurance crucial for professionals to mitigate the risks associated with their specific duties.