"Professional Liability insurance funds losses caused by errors or omissions in the rendering of services." What does this mean? Professionals are human and errors do occur. In medicine and science, the client benefits from the best course of action suggested by an experienced practitioner at the time the service is rendered. The best course of action, though, has some risk of failure. It is wise to cover this potential.

Some examples of typical professional liability claims include: An attorney misses a filing date for a lawsuit and the client loses the right to sue a surgeon who removes too little, too much, or the wrong tissue. A hair stylist misuses chemicals and burns the client. A computer consultant provides incompatible software, causing damage.

Some examples of actual, but unusual claims: Although machinery is tagged as under repair, a building inspector is held responsible for a new system because they merely reported the tag-out rather than investigating the nature of the repair required. A real estate agent sold a home that the listing agent reported as located in the wrong school district. The selling agent did not correct the error although they were never asked to verify the information. A stockbroker advises a client to sell some stock and balance their portfolio. The client refuses and loses money. The client sues for mismanagement.

Most professional services contracts offer...

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