Why this shows up
Clients ask for it when they rely on your expertise and want protection if they believe your work created a loss.
What this changes for you
This points the review toward your services, deliverables, advice, and contract scope. A broker will need to understand what you actually do, not just your company name or industry.
What to check first
- What services are you being paid to provide?
- Could a client lose money if your work is late, wrong, incomplete, or poorly implemented?
- Does your policy description match the work in the contract?
Example contract wording
Vendor shall maintain professional liability insurance with limits of not less than $1,000,000.
What to do next
- Write a plain-English description of your services.
- Compare that description to the contract's insurance wording.
- Ask whether your current or proposed policy covers that exact work.
Questions to ask
- Does the professional services definition match what I do?
- Are defense costs inside or outside the policy limit?
- Does the policy cover prior work or only new work after the policy starts?
Common mistake
Buying a policy with a professional-sounding name without confirming that it covers the actual service you sell.