professional liability

Professionals have a lot on their plates. And sometimes it’s too easy to overlook small details that could have a huge impact on your business, especially when it comes to insurance. This is especially true for professional liability insurance, a “must have” for ALL types of businesses that provide professional services.

What exactly is professional liability insurance? It’s a policy that protects you and your company against charges of negligence or injury regardless of whether you are at fault or not. Sound important? It is. If your business offers services or advises clients, you could be at risk if a client decides that your business didn’t deliver as promised. And if your company deals with data, you’re even more at risk.

Every professional business from accounting to psychology (and everything in between) can be at risk from unsatisfied clients. The 1980’s exploded with litigation cases and the same is still true today. This uprising of risk forced all professions to re-examine their insurance needs and identify and measure what losses could occur. Today, cyber liability has entered the scene and even more is at risk due to data breaches.

Sometimes referred to as privacy insurance, cyberliability policies cover a wide variety of losses related to electronic actions such as internet sales and data collection. An important part of this coverage protects a business if there is a data breach in their customer files – files that could include credit card and Social Security numbers.

In addition to data breaches, professional cyberliability insurance covers a company’s website content and interruptions in business due to fraud, data loss, etc. This type of insurance is often confused with E&O (tech errors and omissions) policies that are geared towards providers of tech products and services.

Who needs to have cyber liability? Any business that deals with data in their customer files or has a website or an online e-commerce presence. In other words, most businesses need cyberliability protection.

Confused? Professional liability insurance has many facets, each designed for specific industries. For example, accountants have cyber liability risks that change almost daily due to changing and complex tax regulations and the sensitive financial information and numbers they have on file for their clients. Physicians are also at risk and need to be concerned with the new cyber threats and are advised to check their malpractice insurance to be sure it includes data security and privacy breaches.

Bottom line is that it’s better to be safe than sorry. Check with your insurance agent to discuss your business and seek advice as to whether a cyberliability policy is something you need to add to your insurance portfolio.


This information is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.  Should you have any questions or would like to discuss your risk exposure with your business insurance, please contact the insurance pros at ARCW Insurance.  We are here to help.