Which statement accurately describes the function of professional liability insurance?

Professional liability insurance is specifically designed to protect professionals against claims of negligence, errors, or omissions that may arise from the services they provide. This coverage is crucial in fields such as accounting, law, and medicine, where clients might allege that the professional failed to perform their duties to the expected standards, leading to financial loss or harm.

By having this type of insurance, professionals can effectively manage the financial risks associated with lawsuits or claims that may arise from their professional services. This ensures that they are prepared to handle legal expenses and potential settlements without facing significant financial strain.

The other statements do not accurately describe the function of professional liability insurance. For instance, it does not cover property loss due to theft, it does not replace worker's compensation, and it is not universally mandatory for all businesses. The specific focus on protecting against claims of negligence is what distinguishes professional liability insurance from other types of coverage.