Professionals in any field are expected to provide expert-level services. This is especially true for people in medicine and law. If these people fail their clients or patients, then they are liable for the damages they cause. This is why professional liability insurance is recommended for people in certain professions.
There is also personal liability insurance which covers the cost of defending a company during a civil case. Note that it works for civil cases only, and excludes criminal cases. Certain professions require all its members to have liability coverage. For example, medical and legal professionals should have malpractice insurance. Auto and homeowners insurance contain liability, but this type of coverage doesn’t work in professional situations. Professional liability must be purchased separately.
Under no circumstances does liability coverage include coverage in criminal cases. And some civil cases can be excluded at the insurers discretion. The only exception is if the policy clearly states that all civil cases are covered. Issues concerning negligence, giving bad advice, misrepresentation, violation of good faith and fair dealing are generally covered by liability.
Professional liability coverage is recommended for any business or individual who provides a service. This includes hospitals, restaurants, law firms, hospitals, and manufacturers. Just keep in mind that liability doesn’t provide coverage in criminal cases.