Professional Liability & Malpractice Insurance

They are closely related but not identical. Malpractice insurance is a specific type of professional liability insurance used primarily in healthcare and legal professions. Professional liability (or E&O) is the broader term covering all service professionals. Both protect against claims of negligence, errors, or failure to perform professional duties to the expected standard.

The two primary forms are claims-made policies and occurrence policies. A claims-made policy covers claims filed while the policy is active, regardless of when the incident occurred. An occurrence policy covers any incident that happened during the policy period, even if the claim is filed years later. Claims-made is the most common structure for professional liability coverage.

Any professional who provides advice, consulting, or specialized services for a fee should carry professional liability insurance. This includes physicians, therapists, financial advisors, IT consultants, architects, engineers, accountants, and lawyers. Even if you perform your work correctly, a client can still file a claim alleging financial harm, and defense costs alone can be substantial.

Professional liability insurance covers claims of negligence, errors, omissions, misrepresentation, and failure to deliver promised services. It pays for legal defense costs, settlements, and court judgments. It does not cover intentional wrongdoing, criminal acts, bodily injury covered under general liability, or claims arising before your coverage inception date.

Premiums vary based on your profession, annual revenue, claims history, coverage limits, and policy type. A solo consultant may pay a few hundred dollars annually, while a medical practice or large advisory firm may pay significantly more. Soma's Risk Management Team shops your risk across multiple specialty carriers to secure the most competitive rate available for your profile.

Most professionals start with $1 million per occurrence and $2 million aggregate limits. However, healthcare providers, financial advisors, and technology firms with significant client contracts often require higher limits of $2 million to $5 million or more. Contract requirements from clients, licensing boards, or regulators may also dictate minimum coverage thresholds you must meet.

Yes. Soma specializes in placing professional liability coverage that standard brokers decline. This includes high-risk medical specialties, financial services firms with complex exposures, technology companies with large data footprints, and consultants operating in regulated industries. Soma's relationships with specialty carriers like Chubb, Kinsale, and Markel make this possible.

Soma is built for speed. Many professional liability classes can be quoted and bound same-day or within 24 to 48 hours. Unlike traditional brokers who require weeks of back-and-forth, Soma's Risk Management Team processes your application immediately, shops it across relevant specialty carriers, and delivers binding coverage fast—with no unnecessary delays.