Professional liability insurance protects businesses and individuals from financial losses resulting from claims of negligence, errors, omissions, or failure to perform professional duties. It covers the costs associated with defending against lawsuits, including legal fees, court expenses, and any settlement or judgment amounts. This type of insurance is particularly important for service-based industries like healthcare, legal, consulting, and accounting, where clients may allege substandard work, advice, or service. If a client sues due to perceived mistakes, misrepresentations, or professional misconduct, professional liability insurance ensures that the insured is not personally burdened with the full financial cost. It also provides peace of mind, knowing that professionals can continue their work without fear of a single claim jeopardizing their business or reputation. This coverage helps businesses maintain operational continuity even if faced with costly legal disputes, allowing them to focus on their services without constant worry of litigation.