What aspect does professional liability insurance specifically protect professionals against?

Professional liability insurance is designed to protect professionals from claims that arise due to negligence or failure to perform their professional duties to the expected standard. This type of insurance covers legal fees and settlements that may result from allegations of errors, omissions, or negligence in the services provided by a professional, such as an accountant, lawyer, or consultant. It specifically addresses situations where clients believe they have suffered a loss as a direct result of the professional's actions or advice.

In contrast, accidental damage to client property, auto accidents while driving for work, and theft of business equipment fall under different types of insurance coverage. General liability insurance typically handles property damage claims, while commercial auto insurance covers accidents involving vehicles used for business purposes. Insurance for theft of business equipment usually falls under business property insurance. Thus, professional liability insurance distinctly serves the purpose of addressing claims related to the professional services offered.