What does professional liability insurance provide coverage against?

Professional liability insurance specifically covers claims of negligence or malpractice that may arise from the delivery of professional services. This type of insurance protects healthcare providers and other professionals from financial loss due to lawsuits alleging that they failed to perform their duties competently or adequately, leading to harm or injury to a patient or client.

By having this insurance, professionals can ensure that they have the means to defend themselves against such claims and to cover any settlements or judgments that may result from legal actions. This protection is critical in fields where the risk of lawsuits is higher, as it helps sustain a professional’s practice and reputation in the event of unforeseen legal challenges.

The other options do not accurately reflect what professional liability insurance covers; health insurance for patients, losses from business interruptions, and general legal advice fall outside the specific focus of liability insurance, which is primarily concerned with claims linked to professional conduct and services.