Professional Liability Insurance, Errors and Omission Liability Insurance and Malpractice Insurance all refer to the same type of insurance. Each term describes insurance meant to cover financial losses incurred by a client or patient as a result of:
· A failure to complete a professional service correctly (error).
· A failure to complete a service that should have been rendered or give advice that should have presented (omission).
These different terms for Professional Liability Insurance can be interchanged and often are used to indicate different industries. For example, insurance professionals may use:
· Errors and Omission Liability Insurance to describe a business giving advice or doing design work, such as engineers, architects or IT professionals.
· Professional Liability Insurance to describe professionals with services that are not driven by advice, like tattoo artists or barbers.
· Malpractice Insurance to indicate the medical or legal industry.