Insurance that provides for a situation in which you are held legally liable for how you rendered or failed to render professional services.
A type of insurance contract that provides compensation for a person or party injured by a professional’s acts or omissions. Two common types of policies are as follows: (1) Claims made. The claim for damages by the injured party must be made during the policy coverage period in order for the professional to be covered and represented by the insurance company. (2) Occurrence basis. The claim for damages by the injured party is covered by the insurance company as long as the act of professional liability occurs during the policy coverage period, even though the claim is filed after the coverage period ends.