Professional Liability Insurance
Professional liability covers claims that your services or care caused harm. For healthcare and senior care operators it is often the most important policy you carry. Stonebrook places professional liability for healthcare facilities, care providers and professional service firms nationwide.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What is professional liability insurance?
Coverage for claims that a professional service or care you provided was negligent, delayed or harmful, including legal defense.
Is professional liability the same as E&O?
They are closely related. “Professional liability” is common in healthcare; “errors and omissions” is common for non-medical service firms.
Is professional liability claims-made?
Usually, yes. It covers claims first made while the policy is active, subject to a retroactive date.
Who needs it?
Healthcare facilities, senior care operators, treatment centers and any business whose advice, care or services could cause a loss.
How professional liability works.
Negligent care or services
Claims that care, treatment, supervision or a professional service fell below the expected standard.
Legal defense
Attorneys, experts and court costs. In healthcare, defense is often inside the limit.
Claims-made trigger
Covers claims first made during the policy period, for incidents after the retroactive date.
Retroactive date
The earliest date of incidents the policy will cover. Keep it unbroken when you change carriers.
Tail coverage
An extended reporting period for claims made after a policy ends, important when you sell or close.
Licensing and board defense
Some forms add coverage for defending licensing board and regulatory complaints.
Professional liability for care providers.
In adult day care, senior living and skilled nursing, professional and general liability are usually written together, because one incident, like a resident fall, can involve both care and premises.
For substance abuse treatment centers, professional liability needs to fit detox, residential and outpatient levels of care.
For healthcare providers, professional liability is what most people call medical malpractice insurance. Individual physicians, nurses, therapists and other clinicians can start there.
Watch for abuse and molestation exclusions and defense costs inside the limit. Both change how much protection you really have.
Protecting your coverage history.
- Keep your retroactive date.A new policy should cover prior acts back to your original retro date.
- Report incidents promptly.Late notice can jeopardize a claims-made claim.
- Buy tail coverage when needed.When you sell, close or switch to a policy without prior acts.
- Coordinate limits with excess.Severe claims are common in healthcare; see excess liability.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop professional liability across specialist carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Professional liability questions, answered.
What does professional liability insurance cover?
It covers claims that your professional services or care were negligent or caused harm, including legal defense and settlements or judgments up to the policy limit.
What is the difference between general liability and professional liability?
General liability covers bodily injury and property damage from your premises and operations, like a slip and fall. Professional liability covers harm caused by the care or professional services you provide. Healthcare operators usually need both.
Is professional liability the same as malpractice insurance?
For healthcare providers, yes. Medical malpractice insurance is professional liability insurance; “malpractice” is just the more common name. Individual clinicians can see our medical malpractice page.
Is professional liability the same as errors and omissions?
They are closely related. In healthcare it is usually called professional or malpractice liability; for consultants, agencies and other service firms it is usually called errors and omissions.
What does claims-made mean?
A claims-made policy covers claims first made while the policy is in force, for incidents after the retroactive date. Keeping continuous coverage, and buying tail coverage when needed, protects you from gaps.
What is tail coverage?
Tail coverage, or an extended reporting period, lets you report claims after a claims-made policy ends for incidents that happened while it was active. It matters when you sell, close or change to a policy without prior acts coverage.
What does “defense inside the limit” mean?
Legal costs are paid out of your policy limit, so defense spending reduces what is left to pay a settlement. It is common in healthcare professional liability.
Let’s protect the care and services you provide.
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