SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/biz-professional-liability-insurance

Which insurance covers a service business against claims of errors, negligence or malpractice?

Professional liability insurance, also called errors and omissions.

Start playing free

  1. Product liability insurance
  2. Professional liability insurance ✔
  3. Commercial auto insurance

Why: Professional liability is for businesses that provide services, like consultants or designers. It protects against losses from malpractice, errors and negligence. General liability usually does not cover a mistake in your professional advice.

Huh, didn't know that: The SBA identifies professional liability as coverage for businesses that provide services to customers.

The dad joke
Why did the cookie go to court? It was feeling crumby about its case.
Like this card?
Play the game

References

Answer: Professional liability insurance. Professional liability is for businesses that provide services, like consultants or designers. It protects against losses from malpractice, errors and negligence. General liability usually does not cover a mistake in your professional advice.

  1. SBA: Get business insurance www.sba.gov/business-guide/launch-your-business/get-business-insurance
    This coverage protects against financial loss as a result of malpractice, errors, and negligence.
    Checked 2026-10-11.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

Starting and Running a BusinessIf you start selling without registering any business type, what are you automatically?Starting and Running a BusinessWho is responsible for a sole proprietorship's business debts?Starting and Running a BusinessWhat does each partner put into a partnership, according to the IRS?

That's stuff everyone should know.