Learn about professional liability insurance with more frequently asked questions about our coverage.
Our licensed, U.S.-based insurance advisors are ready to help if you have additional questions.
When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase insurance within a few minutes.
What are the main differences between Professional Liability and E&O insurance?
Although they go by different names, professional liability and errors and omissions (E&O) insurance usually provide the same coverage.
They both help protect you when you’re accused of doing an incorrect or bad job.
Some industries commonly call the coverage professional liability, others call it errors and omissions. For example, the term professional liability is often used when describing insurance covering professional mistakes by accountants, consultants, engineers and architects.
E&O insurance is often used when describing this coverage for professions such as real estate and insurance agents.
Note: NEXT sells contractors E&O insurance designed specifically for construction trades. It provides different coverage than our professional liability coverage.
Does Professional Liability insurance cover my subcontractors or employees?
Your professional liability policy can cover your employees but only for the services they deliver for your business.
For example, if you own an architecture firm and one of your employees makes a project design mistake, causing costs and timelines to double, your professional liability insurance could help cover your legal fees if the client sues you.
Your contractors may be covered but it depends on the details of your specific policy. Review your policy documents carefully.
Is Professional Liability insurance legally required?
Professional liability insurance is typically not required by law.
If you work on high-cost projects, your clients may require you to carry insurance so you have financial protection in case of a lawsuit.
Can I add Professional Liability if I already have General Liability insurance or other coverage?
Yes, we offer up to a 10% discount when you add a professional liability policy to your insurance package with NEXT if you have existing coverage.*
You can add professional liability insurance directly through your customer account.
Do you offer prior acts coverage?
It depends on your industry and business operations.
In some cases, we may provide prior acts coverage for businesses that have maintained continuous professional liability coverage at similar or higher limits since the requested retroactive date.
Can I add an additional insured to my Professional Liability policy?
Yes, NEXT customers can easily add an additional insured and share their certificate of insurance with their customer account.
Any person or company you add to your policy is called an additional insured. They are named on your COI.
Will my premium change or my policy be canceled if I file a claim?
No, we won’t alter your premium during the term of an active policy or cancel your coverage due to a claim. We understand that filing a claim is stressful enough without having to worry about it affecting your premium.
At the end of your policy period, however, we will review the details of your business and claims activity. If either has changed since you first applied, we may adjust the premium up or down.
How do I file a Professional Liability claim?
If you are a NEXT customer, you can file a claim with your account online.
After we receive your claim, we will call you to get additional details. You are also welcome to call us to report a claim: 855-222-5919.
If you are not a NEXT customer, you can report a claim in our help center or call us.
It is important to file professional liability claims as soon as possible.
