Professionals are expected to provide expert services. If they fail, then they are liable for any harm they cause. This is why certain professional need Professional Liability insurance.
Personal liability (or Errors & Omissions insurance) covers the cost of defending your company in a civil lawsuit. Some professions require professional liability insurance. This includes areas such as medical and legal professions. But the coverage is commonly called Malpractice Insurance. This type of coverage must be purchased separately. You can’t use the liability provided by a homeowner’s or auto insurance policy.
Liability coverage doesn’t include coverage for criminal prosecution. Some civil cases may also be excluded unless written explicitly into the policy. Liability commonly covers cases dealing with negligence, misrepresentation, violation of good faith and fair dealing, and damaging advice.
Any business involved with providing a service should have professional liability coverage. Law firms, hospitals, restaurants, and manufacturers are an example of industries that need liability coverage. Liability will help during a civil suit, but not during a criminal case.