What is the purpose of professional liability insurance?

Professional liability insurance is designed to provide coverage for claims arising from errors or omissions in the course of delivering professional services. This type of insurance is particularly important in fields such as construction management, architecture, and engineering, where professionals may be held responsible for financial losses resulting from mistakes made in their work. The coverage helps protect professionals from legal claims that may arise due to allegations of negligence, inadequate work, or failing to fulfill contractual obligations.

In contrast, theft at construction sites relates to general property concerns, which would not be covered under professional liability insurance. Similarly, insuring property against natural disasters addresses risks associated with physical damage to assets, rather than liabilities stemming from professional services. General liability claims typically involve broader coverage for bodily injury or property damage, making it distinct from the specific protections offered by professional liability insurance. Therefore, the primary purpose of professional liability insurance is indeed to shield against unintentional errors made during the provision of professional services.