AE Blog - 5 Key Terms in Professional Liability Insurance
- Professional Liability Insurance – Protects professionals against potential claims of negligence by clients.
- PLI – Abbreviation for Professional Liability Insurance
- Errors and omission insurance – A business liability insurance for professionals such as insurance agents, real estate agents and brokers, architects, attorneys, and other business professionals. An error or omission, a mistake, which causes financial harm to another, can occur on almost any transaction in any profession. This type of insurance protects professionals or their employers from the full expenses of defense for litigation. It also covers related costs of lives or property lost due to an error or omission in providing covered Professional Services. This insurance can be expensive but it often required by contractual needs and is entirely separate from a standard general liability or property insurance policy.
- E & O – Abbreviation for Errors and Omission Insurance.
- Professional Indemnity Insurance – An umbrella term that can be used to describe professional liability insurance, errors and omission insurance, and other related forms of coverage. A professional indemnity policy will often differentiate between coverage of all errors and omission, or only negligent errors and omission. It will also address which, if any, civil liabilities are covered.