Professional Liability Insurance | NJ

What Kind of Businesses Need Professional Liability Insurance

If you own a business, insurance can be a tricky thing to navigate. No matter what kind of business you’re in, you need insurance. Aside from homeowner’s, life, and auto insurance, business owners need to protect themselves from the many risks that can come with owning and operating a working business. Professional liability insurance is one type of insurance that most businesses need to consider investing in. Also known as professional indemnity insurance, or errors & omissions insurance, professional liability insurance protects you by covering losses that can result from lawsuits filed against you. But what kinds of businesses need this insurance?

Any business that provides a service or gives advice to a client needs this type of coverage. But the following industries have a particular need for this.


There are few industries that can be as hazardous and unpredictable as contracting. The potential for contractors to make mistakes is one thing, but weather, materials, and time are another. All of these can lead a client to sue a contractor for not delivering. That can be because they missed their deadline, or their work did not meet expectations. Contractors are not always at fault for mistakes on a job site, but some clients may still sue them.  So professional liability insurance can protect you.

Lawyers and Doctors

Legal professionals and medical professionals often find themselves facing lawsuits from disgruntled clients.  Many states require these attorneys and doctors have some type of professional liability insurance. So, if you’re a doctor in lawyer in one of these states, it’s a necessity for you to have this insurance. But even if it isn’t required by law, considering the potential cost of facing a malpractice lawsuit, you should consider professional liability insurance.


Independent contractors and freelancers who work in creative fields such as writing, or photography run the risk of lawsuits when they can not deliver the work they agreed to complete. This can happen for a number of reasons. Some of those reasons are absolutely legitimate such as illness or a death in the family. Some clients may not be reasonable about a missed appointment or delay in work, though. This means you can run the risk of facing a lawsuit. For many creative professionals, legal fees may seem impossibly expensive when they face a lawsuit. Professional liability insurance will cover or at least defray some of the costs incurred.

If you need professional liability insurance, contact our team today!

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