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What is Professional Liability Insurance?
Professional Liability Insurance (PL), also called Errors and Omissions Insurance (E&O Insurance) or malpractice insurance, protects your clients if they are sued for negligence in performing professional services, even if they haven’t made a mistake.
A customer could sue your client because they did something they shouldn’t have, or they didn’t do something they should have, while providing professional services. Businesses that provide advice as part of their professional services should consider Professional Liability Insurance.
What does Hiscox Professional Liability Insurance cover?
Alleged or actual negligence
Defense costs
Personal injury (e.g., libel or slander)
Actions of temporary staff and independent contractors
Claims arising from professional services provided in the past (in some cases)
Who needs Professional Liability Insurance?
Professional Liability Insurance coverage gives your clients’ business protection from the risks they face in delivering their professional services.
Businesses should consider purchasing Professional Liability Insurance coverage if they:
Provide a professional service
Regularly give advice to customers
Are requested by a client to have coverage to complete a contract.
Takeaways from the 2023 Hiscox Underinsurance in Small Business Report
Just one-third (32%) of small businesses have Professional Liability Insurance, yet many businesses are vulnerable to a claim of negligence arising from their professional services. Make sure all your business clients are protected with Professional Liability Insurance coverage from Hiscox.
Fast facts about Hiscox Professional Liability Insurance
Insurance Business America 5-Star Award Winner for Professional Liability Insurance
Admitted
$5m revenue limit through Hiscox NOW
Up to $5 million policy limit
Start-up friendly
$270.00 minimum annual premium
Deductible options from $0-$10k
Available in 49 states across the US (excluding Alaska)
Policy documents will be sent to both you and your client
Automatic renewals after 12 months
What is the Hiscox appetite for Professional Liability Insurance?
We offer same-day Professional Liability Insurance for hundreds of professions. Some of the most popular classes include:
- Allied health
- Architects and engineers
- Creative
- Consultants
- Financial services
- Small contractors
- Landscape and janitorial
- Marketing/PR
- Technology
Your client could be covered in situations like these
- An engineer or designer misinterprets renderings or orders costly materials that can't be used on a job
- A project manager faces project delays after failing to inform customers about necessary signoffs
- A tax preparer misses a deduction that could have been claimed by their client, leading to an overpayment of taxes
- A notary public notarizes a document in which not all of the required fields were completed.
The above are just a few of the many scenarios in which a Professional Liability Insurance policy could cover your client’s expenses and associated damages resulting from a professional negligence claim.
Optional coverage upgrades
Depending on your client’s specific needs, you can customize their Professional Liability Insurance with these options on most classes:
Waiver of subrogation
Waives Hiscox’s right to legally pursue a negligent third party that causes a loss. This is sometimes required of your client as part of a contractual agreement.
Contingent bodily injury and property damage
Covers bodily injury and property damage claims that arise out of your client’s professional services. Coverage limits can be adjusted as needed.
Blanket additional insured
Included by default at no extra charge. Provides vicarious liability coverage to certain parties your client, as the named insured, is required to cover by contract.
These enhancements can be added to policies in the Hiscox NOW® quoting process on the ‘PL limits and options’ page.
What does Professional Liability Insurance not cover?
Bodily injury or property damage
Depending on your client’s professional service, we generally will not cover damages or claim expenses if they injure someone or damage their property.
Fraudulent acts
We won’t cover any fraudulent, dishonest, or criminal acts. However, we’ll defend these actions until they’re proven to be fraudulent, dishonest, or criminal in court. If this happens, we’ll kindly request that your client reimburse us for those costs.
Employment matters
We will not cover your clients for claims alleging any improper employment practices committed against their employees or for any workers compensation claims or employer’s liability claims.
False advertising
We will not cover any false advertising claims.
Personally identifiable information
We will not cover your client’s failure to protect any personally identifiable information in their care, custody or control unless we’ve explicitly agreed to cover these claims and they arise out of your client’s professional services.
Other services
We will not cover any medical, nursing, legal, or actuarial services, regardless of occupation. We will also not cover any services that are not specified by the professional services endorsement attached to your client’s policy.
The cost of Professional Liability Insurance
The cost of Hiscox Professional Liability Insurance varies based on the size of your client’s business, the industry they are in, their location, and the amount of coverage needed.
For the exact premium for a specific client, get a quote.
Bundle and save
We offer customers up to a 5% discount when they buy two or more Hiscox products.
Related products
Professional Liability Insurance can be packaged with:
Why Hiscox?
You have choices when it comes to quoting Professional Liability Insurance for your clients. Here’s why you should choose Hiscox.
Business insurance experts
We only sell business insurance and we customize coverage for the risks your clients face.
Write more business, faster
With Hiscox NOW, quote and bind online in minutes, for same-day coverage. We handle all the servicing and billing, and policies auto-renew, so you collect the commission for the life of the policy.
Award-winning claims team
Our award-winning in-house claims team will walk your client through the claims process, and our A (Excellent) rating from A.M. Best shows we stand behind our policies.
Ready to write Professional Liability Insurance?
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Professional Liability Insurance FAQs
The use of this portal to obtain a premium operation does not alter or change your relationship with Hiscox or your customer. At all times you remain broker for the applicant and not an agent of Hiscox.
Our companies in the US include Hiscox Insurance Company Inc. (NAIC# 10200), and its general agent, Hiscox Inc. Hiscox Insurance Company Inc. is a Chicago, IL domiciled insurer admitted or licensed to do business in all 50 states and the District of Columbia. Hiscox Insurance Company Inc. is rated A (Excellent) by A.M. Best with a group financial size category (FSC) of XV ($2 Billion or greater), proving we have strong capital reserves.
Hiscox Inc., a DE corporation that does business in California as Hiscox Insurance Agency, is an approved Lloyd’s cover holder and underwrites surplus lines business on behalf of Lloyd’s Syndicates 33 and 3624. Syndicate 33 is rated A (Excellent) by A.M. Best. Lloyd's syndicates are restricted in doing business in the USA and its territories as they are not US-based insurers. The business we write on behalf of Lloyd's Syndicates 33 and 3624 in the US is placed by licensed surplus lines insurance brokers.