Example Scenarios Covered by Professional Liability Insurance

• Consulting Errors: As a financial consultant, you provide investment advice that inadvertently leads to a client’s financial loss. Professional Liability Insurance covers the legal defense costs and any settlements or judgments.
• Misrepresentation Claims: As a web developer, a client claims that you misrepresented your ability to complete a website within a specific timeframe, resulting in a financial loss. Professional Liability Insurance covers the legal costs and any compensation awarded to the client.
• Negligence Allegations: As a healthcare consultant, a client accuses you of negligence in advising on patient care protocols, leading to patient harm and subsequent legal action. Professional Liability Insurance covers the costs of defending against the claim and any resulting damages.
• Breach of Contract: As a freelance writer, a client alleges that you failed to deliver the agreed-upon content, resulting in financial damages. Professional Liability Insurance covers the legal defense costs and any settlements or judgments.
• Self-Employed Tax Advisor: A self-employed tax advisor makes an error in a client’s tax return, leading to an IRS audit and fines. Professional Liability Insurance covers the legal fees and any financial penalties.
• Independent Contractor in Software Development: An independent software developer is accused of failing to deliver a software project that meets the client’s requirements, leading to additional costs for the client. Professional Liability Insurance covers the costs of defending against the claim and any resulting damages.