Which type of insurance covers claims arising from professional services?

Professional liability insurance is designed specifically to cover claims that arise from the services provided by professionals in various fields, such as medical, legal, accounting, or consulting services. This type of insurance, often referred to as errors and omissions insurance, protects professionals against allegations of negligence, errors, or omissions that may occur in the course of providing their specialized services.

The coverage includes defense costs and settlements or judgments, which can be crucial for professionals facing lawsuits. Given the complexity and potential financial implications of providing professional services, this insurance is essential for mitigating risks associated with professional liability.

Other types of insurance, such as commercial casualty insurance and general liability insurance, typically focus on general business risks and bodily injury or property damage rather than the specific claims related to professional services. Property insurance covers damage to physical assets but does not extend to liability claims stemming from services rendered. Therefore, professional liability insurance is clearly the appropriate choice for covering claims arising from professional services.