What does professional liability insurance do?

• A. Cover staff personal injuries
• B. Protect businesses from claims of negligence
• C. Pay for marketing campaigns
• D. Cover losses due to stock theft

Answer: (B)

The main idea is that professional liability insurance protects a business from financial losses due to claims of negligence or errors in the professional services provided. In veterinary nursing, this means if a client claims that advice, diagnosis, or treatment contributed to harm or loss, the policy helps pay for legal defence and any settlements or judgments up to the policy limits. It focuses on mistakes or alleged mistakes in professional work, not on general business risks.

Things it does not cover include injuries to staff, which are covered by workers’ compensation or employers’ liability; marketing expenses, which fall under business development costs; and losses from stock theft, which are handled by crime or property insurance.