When professionals are hired, they are done so with the belief that they have the necessary expertise and knowledge to carry out the task to the best of their abilities. Added to that, there is a certain code of conduct they are expected to abide by while doing their jobs. When professionals fail to meet the standards desired of them and their skill levels fall much below expectations, they are liable to be taken to court for the loss they inflict upon the business of another person. Thus, they need professional liability insurance. Professional liability insurance is termed "errors and omissions" liability, when liability is confined to acts of negligence.
Professional liability insurance is an independent and specialty coverage. It is not provided under business owner's policies or homeowner's endorsements. Professional liability coverage covers its client against damages from claims of suspected negligent acts, errors or omissions in performance of the client's professional performance, etc. This could include a plethora of issues like software or system failure, loss of client data, non-performance, etc. Professional liability insurance coverage also includes the legal defense cost. The costs it covers, including court costs, are restricted to the coverage limits in the client's insurance policy.
There are different types of personal liability insurance coverage. Personal injury covers the client against claims of slander, libel and invasion of privacy. Intellectual property infringement coverage covers the client against claims of copyright infringement. Software processes and systems are commonly termed "intellectual properties." Also, worldwide coverage is provided if the suit is bought in America.