Which insurance protects contractors from liability due to professional mistakes?

Professional liability insurance specifically safeguards contractors from claims arising due to professional mistakes or negligence in the performance of their duties. This type of insurance is designed to cover legal fees and damages that may result from claims of inadequate work or errors in consultation, design, or delivery of services.

For contractors, these mistakes can lead to significant financial repercussions, and having this type of coverage provides essential financial protection. It is especially important in fields where professional services are rendered, as clients may hold contractors accountable for perceived failures in their professional abilities.

In contrast, general liability insurance typically covers claims related to bodily injury or property damage that may occur as a result of the contractor's operations but not professional mistakes. Workers' compensation insurance covers injuries to employees incurred on the job and does not address professional errors. Property insurance protects the contractor's physical assets and does not apply to liability for mistakes made in the performance of duties. Thus, professional liability insurance is the correct choice for protection against liability due to professional errors.