By: Jeremy Welsh, CIC
Executive Vice President, Commercial Lines
HUB International

Professional liability insurance, commonly referred to as errors and omissions (E&O) insurance, is a type of coverage that provides protection to professionals against claims of negligence, errors, or omissions in their professional services. The policy is designed to offer financial protection in case a client alleges that the professional's advice, services, or work caused them financial loss or harm.

Professionals in various fields such as doctors, lawyers, accountants, consultants, interior designers, architects, and engineers obtain professional liability insurance as a means of mitigating potential risks. The coverage assists in covering legal defense costs, settlements, judgments, and other related expenses arising from a covered claim.

Conversely, most businesses purchase general liability insurance to protect themselves from risks such as slip and falls on their premises, and other types of injuries and property damage caused by their business operations. However, it is important to note that general liability insurance does not cover allegations of errors or omissions against professionals working for the business or owning the business.

The primary difference between professional liability insurance and general liability insurance lies in the types of risks they cover. Professional liability insurance specifically addresses claims related to professional services, while general liability insurance focuses on more general business liabilities. As an interior design professional, it is essential to have a clear understanding of the specific risks associated with your profession and consider both professional liability insurance and general liability insurance to ensure comprehensive coverage. Without the right protection, you could be facing significant legal costs and judgments.

I hope this information was helpful! ASID provides a tailored solution at a discounted rate exclusively to the members of ASID, learn more on the member resources page.