professional liability insurance nc

NC Professional Liability Insurance: Protect Your Business Now

Professional liability insurance, also known as errors and omissions insurance (E&O), is like a shield for small business owners in North Carolina. It covers the expenses if a client is unhappy with the work and sues. While it’s not a must by state law, it’s a smart move for professional service providers in NC.

Professional Liability Insurance In North Carolina

Professional liability insurance takes care of the expenses tied to lawsuits about your work quality, covering legal fees and settlements. It includes various customer claims for numerous businesses in North Carolina.

  • Professional liability insurance in North Carolina steps in when there are accusations of negligence, like an architect creating an unsafe building design.
  • It covers work mistakes, such as an accountant making a mathematical error or leaving out crucial data, leading to financial losses for the client.
  • Inaccurate advice is also covered, like a lawyer misinterpreting a legal statute, resulting in costly mistakes.
  • Missed deadlines and undelivered services, such as a web designer needing to complete a website on time, are protected by this insurance. It’s like a safety net for professionals in NC.

How does professional liability insurance work in North Carolina?

Professional liability insurance nc covers your legal defence costs if you get sued for a mistake in your professional work.

Legal battles can get pricey even if you did nothing wrong. On top of your lawyer’s fees, you might have to pay for things like copying, filing, and travel. There could also be expenses for expert witnesses and, in some cases, a court-ordered judgment or a settlement to avoid a trial. Having this insurance is like having a financial safety net for professionals in NC.

Professional liability insurance NC covers everything mentioned, but it has limits. You need to pick limits considering the costs of dealing with a lawsuit. Also, determine how much coverage you need to get a contract or work in a specific field.

This is because this insurance is affordable for small businesses in NC. Talk to an insurance agent if you need more clarification about the limits or options. They can assist you in finding the coverage that suits your needs.

Are There Any Exclusions In Professional Liability Insurance?

  • Professional liability insurance NC helps with various lawsuits but won’t cover harm you intentionally cause to others.
  • Insurance companies usually say “no” to things like breaking the law, doing services for another business not on your policy, or being involved in defamation (that’s saying bad things about someone).
  • Discrimination is another thing not covered. So, while this insurance is excellent for many situations, it has limits. It’s always good to know what’s included.

General Liability Insurance, Including Professional Liability Coverage

Public liability insurance in North Carolina only covers professional mistakes. It handles typical business issues like customer injuries or property damage.

For example, if someone gets hurt at your place, your general liability policy steps in. It covers legal costs, too. But if someone sues over your work, that’s where your professional liability coverage kicks in. It’s like having two superheroes, one for everyday stuff and one for your professional skills.

professional liability insurance nc

What Other Types Of Insurance Should NC Businesses Consider?

When you start a small business in North Carolina, you often get general liability and professional liability insurance first. But here’s the thing: There are other insurances you need.

If you have three or more workers, you’ve got to have workers’ compensation insurance. It covers medical costs and lost wages if someone gets hurt at work.

Then there’s commercial property insurance, covering your business space and gear. You usually need it if you are signing a lease.

A business owner’s policy (BOP) is like a combo deal. It gives you both general liability and property insurance and is usually cheaper.

You must have commercial auto insurance in North Carolina if you use vehicles for work.

Remember, cyber insurance. It helps if your business faces a data breach or a sneaky software attack.

And there’s employment practices liability insurance (EPLI), which kicks in for lawsuits about harassment, discrimination, or wrongful termination. Professional liability won’t cover these, so having EPLI in your insurance squad is good.

Is Professional Liability Insurance Required In North Carolina?

In North Carolina, small business owners aren’t forced by law to get professional liability insurance. Here’s the twist: you might still need it to sign a contract or snag a license in your field. It’s like having an extra key to unlock more opportunities for your business.

Healthcare Professionals

Doctors and healthcare professionals in North Carolina call professional liability “medical malpractice insurance.” Surprisingly, the law doesn’t make it a must, but some hospitals or healthcare places might want you to have it.

Most NC doctors need a professional liability policy with a $1 million limit for each issue and a $3 million overall limit. It’s like having a safety net, just in case, and some places insist on it to work with them.

Real Estate Professionals

Even though North Carolina doesn’t make it a must, some states require real estate agents to have E&O insurance.


For lawyers, professional liability is also called legal malpractice insurance. In North Carolina, attorneys don’t have to get it, but having this insurance can be a big help if there’s a lawsuit. It’s like having a safety shield, just in case.

Who Needs Professional Liability Insurance In North Carolina?

If your business offers professional services or expert advice, having professional liability coverage is brilliant. A client could sue you if your service or advice accidentally causes harm. Even if the lawsuit is unjustified, it can get costly with attorney fees, court costs, or a settlement. Having this coverage is like having a financial safety net for your business.

Industries that often face the risk of professional liability claims include

Technology Professionals

IT consultants and other tech pros can get sued for system downtime, data breaches, missed deadlines, or errors. To cover all these risks, they can combine E&O insurance and cyber insurance into one policy called tech E&O. It’s like having a double shield to protect against these issues in North Carolina.

Building Design Businesses

People in building design, like architects and engineers, could face a lawsuit if a client says they made a pricey mistake. For instance, a bridge they designed might develop cracks later on, or a project could get delayed for months due to unexpected issues.

Contractors And Construction Businesses

Construction and contracting pros, like carpenters and electricians, might deal with a client lawsuit for construction delays. There could be negligence claims if the customer isn’t happy with the work or has to make pricey changes after the job is done. Professional liability insurance nc helps cover these situations, acting as a safety net for their business.

Insurance Professionals

Insurance pros, like agents and brokers, handle a lot of money info. They give advice, and sometimes clients blame them if something goes wrong. Even if you did everything right, an upset customer might sue if they lose money following your advice. Professional Liability Insurance NC helps cover these situations, acting like a safety net for your business.

Price Of Professional Liability Insurance In North Carolina

Across the country, the typical monthly cost for professional liability insurance is around $61. It’s lower in North Carolina, averaging around $56 per month.

Type of Business and Industry: Different businesses and industries have varying risk factors that influence the cost of professional liability coverage.

Coverage Limits and Deductible: The amount of coverage you choose and the deductible you set can impact the cost of your professional liability insurance.

Business Size and Location: The size of your business and its location play a role in determining the cost.

Business Operations: The nature of your business operations also affects the pricing of professional liability coverage.

Claims History: Your past claims history is considered when determining the cost of your professional liability insurance.


Professional liability insurance is not mandatory by state law in North Carolina. However, businesses may find it necessary for contractual agreements or obtaining licenses in specific fields. It serves as a valuable financial safety net for professionals facing lawsuits related to their work quality.

Professional liability insurance in North Carolina covers legal defense costs associated with mistakes in professional work. It addresses claims of negligence, work errors, inaccurate advice, missed deadlines, and undelivered services. It acts as a shield for various professionals, such as architects, accountants, lawyers, and web designers, protecting them from the financial burden of lawsuits.

While professional liability insurance provides broad coverage, it does not cover intentional harm caused by the insured. Exclusions may include illegal activities, services for businesses not on the policy, and defamation. Discrimination claims are also typically not covered. Understanding these exclusions is crucial for companies to know the limitations of their insurance coverage.

In addition to professional liability insurance, North Carolina businesses should consider other types of insurance, such as workers’ compensation, commercial property insurance, business owner’s policy (BOP), commercial auto insurance, cyber insurance, and employment practices liability insurance (EPLI). The specific needs depend on factors like the number of employees, business operations, and industry risk factors.

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