What is "professional liability insurance" primarily designed to protect against?

Professional liability insurance is primarily designed to protect professionals against claims of negligence or malpractice in the services they provide. This type of insurance is vital for individuals such as doctors, lawyers, accountants, and consultants, who may be held accountable for errors or omissions in their professional duties that could result in financial harm to clients.

The essence of professional liability insurance lies in its focus on the unique risks associated with providing professional services, where the standard of care is expected to be high, and any deviation from it can lead to significant claims. This insurance helps cover legal defense costs, settlements, or judgments that might arise from such claims, thereby safeguarding the professional's financial stability and reputation.

In contrast, other options like claims from natural disasters, property damage by employees, or motor vehicle accidents pertain to different aspects of liability and are generally covered under other types of insurance, such as property insurance or general liability insurance. Thus, the correct understanding of professional liability insurance hinges on its role in addressing negligence or malpractice specifically related to professional services rendered.