Don't be thrown off by the term professional liability. That covers a broad range of services by people with specialized knowledge and training. You may think of a physician and a lawyer as the only professionals (physicians require a specific medical malpractice insurance policy). Actually the term encompasses occupations like web site designers, travel agents, and insurance agents.

Some will argue about who is a professional. For insurance purposes, it's someone that provides specialized services that not everyone can provide. Thus insurance is available for a wide range of services. Bodily injury or property damage is unnecessary for damage to the recipient of a professional's service. If an escrow agent fails to perform properly there may be no property damage or bodily injury; however the parties will suffer at least a delay.

Why don't general liability insurance policies cover professionals? The professional risk differs from the general liability risks we all have in our personal and business lives. By separating general and professional, you don't pay extra general liability premiums to cover the professionals' risks.

Check with your insurance agent to see if your business needs professional liability coverage. The list of businesses that do includes:

• paramedics
• sports agents
• medical imaging centers
• tour operators
• mortgage brokers
• interior designers

In the construction field, design/build firms and project managers also need professional liability insurance.

The term errors and omissions, or E & O can be used as a distinction from professional liability insurance. This applies to:

• medical related occupations
• real estate agents
• accountants
• insurance agents.

The latter group refers to its coverage as E & O.