As a Small Business Owner, Do I Need Professional Liability Insurance?

Guest blog post by Aaron Hichman, Brignole & Ghiri Insurance and Real Estate Service

What is Professional Liability Insurance?

Professional liability insurance, also called errors and omissions insurance (E & O insurance) or indemnity insurance, protects your business if you are sued for negligently performing your services, even if you haven’t made a mistake.

Why do I need Professional Liability Insurance?

Professional liability insurance coverage gives your business protection from the risks you face in delivering your professional services. You should seriously consider professional liability insurance coverage if your business:

  • Provides a professional service.
  • Regularly gives advice to clients.
  • Is requested by a client to have professional liability insurance to complete a contract.

What Does Professional Liability Insurance Cover?

What is covered?

  • Alleged or actual negligence
  • Defense costs
  • Personal injury (e.g., libel or slander)
  • Copyright infringement
  • Worldwide coverage
  • Temporary staff and independent contractors
  • Claims arising from services provided in the past
  • Claims and damages

What is not covered?

  • Bodily injury or property damage
  • Fraudulent acts
  • Employment matters
  • False advertising
  • Patents and trade secrets
  • Personally identifiable information
  • Other services

Questions? Contact Aaron Hichman at  510-653-0685 x114 or email him at

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