Professional Liability Insurance in Pennsylvania

Also providing  professional liability insurance to residents in Maryland, North Carolina, New Jersey, and Virginia.

Anthony Acri Insurance

What is professional liability insurance?

Professional liability insurance is a type of commercial insurance coverage that protects professionals from financial losses due to claims of negligence, errors, or omissions in the services they provide. Unlike general liability insurance, which typically covers bodily injury and property damage, professional liability insurance focuses on claims related to professional services or advice. 

Why do businesses in Pennsylvania need professional liability insurance?

Businesses and professionals in Pennsylvania need professional liability insurance to protect against potential lawsuits that could arise from their work. Even with the utmost care and expertise, mistakes happen, and clients may take legal action if they believe your work caused them harm or financial loss. This coverage is particularly important in fields where the risks associated with errors are high, such as healthcare, legal services, consulting, financial advising, and engineering. Professional liability insurance not only offers financial protection but also provides peace of mind, helping you focus on your work with confidence.

Who needs professional liability insurance in Pennsylvania?

Several types of businesses and professionals in Pennsylvania may need professional liability insurance, including:

• Healthcare providers – Doctors, nurses, and other medical professionals.
• Legal professionals – Lawyers, paralegals, and legal consultants.
• Financial advisors and accountants – Accountants, tax preparers, financial planners, and investment advisors.
• Consultants and freelancers – Business consultants, marketing professionals, IT consultants, and project managers.
• Architects and engineers – Architects, civil engineers, structural engineers, and construction project managers.

What does professional liability insurance cover?

Professional liability insurance typically covers:

• Negligence: Claims made due to mistakes or failure to perform professional duties.
• Errors and Omissions: Protection against claims of professional errors or failure to provide services as expected.
• Legal Defense Costs: Coverage for legal fees and costs to defend against lawsuits, even if the claim is found to be baseless.
• Settlements and Damages: Coverage for settlements and damages awarded to the claimant if the business is found liable.
• Breach of Confidentiality: Protection against claims of disclosing confidential information.
• Misrepresentation: Coverage for claims related to false or misleading information provided by the professional.
• Failure to Meet Professional Standards: Protection when services provided fail to meet industry standards or expectations.

Are there additional coverages that complement professional liability insurance?

Yes, Pennsylvania businesses may consider adding the following coverages to supplement their professional liability insurance:

• General Liability Insurance – Covers bodily injury, property damage, and advertising injuries that occur on your business premises or during operations.
• Cyber Liability Insurance – Protects against data breaches, cyberattacks, and costs associated with restoring client information and systems.
• Employment Practices Liability Insurance (EPLI) – Provides coverage for claims related to employee disputes, such as discrimination, harassment, and wrongful termination.
• Directors and Officers (D&O) Liability Insurance – Protects company executives from personal liability related to their business decisions.
• Commercial Property Insurance – Covers damage to your business property, such as office equipment and buildings.

Is it necessary to have professional liability insurance for freelance work?

Yes, it is highly recommended for freelancers to have professional liability insurance. Freelancers often work independently and directly with clients, which means they bear full responsibility for any errors, omissions, or negligence claims related to their work. Even if you’re confident in the quality of your services, clients may still bring claims if they believe your work caused them financial harm. Having professional liability insurance offers freelancers peace of mind and financial protection, covering legal fees and potential settlements. For Pennsylvania freelancers, this coverage may be essential, especially if their work involves consulting, design, accounting, or other specialized services.

Can professional liability insurance cover claims related to past work?

Professional liability insurance can cover claims arising from previous work, but it depends on the specific terms of the policy. Professional liability policies are typically “claims-made,” meaning they cover claims filed during the active policy period, regardless of when the work was performed. However, to cover past work effectively, you must have continuous coverage from the time the work was completed. Adding a retroactive date to your policy allows claims for work completed before the policy’s start date, and extended reporting periods (tail coverage) allow claims to be reported after the policy ends. This flexibility makes it essential for Pennsylvania professionals to discuss these options with their insurance provider.

What factors affect the cost of professional liability insurance?

The cost of professional liability insurance in Pennsylvania may vary widely depending on several factors:

1. Industry and profession – Certain professions, like healthcare and legal services, face higher risks and typically pay more for coverage.
2. Coverage limits – Higher coverage limits provide greater protection but come with increased premiums.
3. Business size and revenue – Larger businesses or those with high revenue may face higher premiums due to increased exposure.
4. Claims history – Businesses with a history of claims or lawsuits may pay more, as they present a higher risk to insurers.
5. Policy deductible – Choosing a higher deductible can reduce premiums, but it also means the business must cover a larger portion of any claim.
6. Policy terms – Certain policy features, such as extended reporting periods, may increase the cost of coverage.

How can businesses in Pennsylvania get professional liability insurance? 

Reach out to the independent agents at Anthony Acri Insurance Agency for a fast quote on professional liability insurance in Pennsylvania. Our experienced team understands the unique risks faced by Pennsylvania professionals and will work with you to customize a policy that meets your specific needs. Whether you’re a freelancer, consultant, healthcare provider, or small business owner, we’re committed to providing reliable, affordable coverage that protects you from potential legal challenges. Safeguard your career and reputation by choosing a professional liability policy that’s tailored for you—contact Anthony Acri Insurance Agency today to get started.