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The Difference Between Professional Liability And Errors And Omissions Insurance

Mistakes happen regardless of how careful and good you are. However, if your client thinks that your professional mistake harmed them or caused them damages, financially or physically, they might file a lawsuit against you.

This is where professional liability and errors and omissions insurance start playing their role. However, what is the difference between the two? Are there any?

Professional Liability vs. Errors and Omissions Insurance

Professional Liability and Errors and Omissions Coverage are the same. Businesses use the two terms interchangeably. "Malpractice Insurance" is also one name for professional liability. These insurances have the same benefits. The only difference is what industries or professions they cover.

Accordingly, here is a summary of other names for this policy and where they are used:

  • Professional liability insurance - used mainly for engineers, architects, and professional consultants. This name will most likely appear if your service is considered "professional" and does not come within the malpractice definition.

  • Errors and Omissions insurance is used for accountants, real estate companies, tech companies (such as ITs), and startups.

  • Malpractice insurance - is mainly used in medical and legal fields.

No matter what the name is for this policy, professional liability insurance protects you from lawsuits from your clients if you make a mistake while doing your work. If a client sues you, the coverage might help you pay for your legal case.

What is Professional Liability?

This insurance protects and helps lawyers, doctors, accountants, and other professionals against lawsuits from professional mistakes that your clients claim. One example is when you're in the medical field and make one medical malpractice. This mistake could lead your patient to file a lawsuit against you.

Professionals in expert fields are recommended to have this kind of insurance for protection, as general liability insurance does not offer protection against professional practice mistakes and claims.


Mistakes are unavoidable in every job. No matter how good you are at your work, you could accidentally make a mistake, and having insurance is one way to protect yourself and your business. Professional liability insurance is essential for a person who offers professional services.

At Second Western Insurance Services, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.


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