Believe it or not, the difference between malpractice and professional liability insurance is rather simple: Malpractice is a form of professional liability insurance. Professional insurance, on the other hand, is coverage for bodily injury or property damage that arises from services a professional provides.Click to see full answer. Also to know is, what does a professional liability policy cover?Professional liability insurance is a policy that helps cover a mistake made by your business or a wrongful act attributable to your company. Professional liability insurance helps businesses weather the impact of a significant mistake that may cause harm to a client or customer.Similarly, what is the difference between general liability and errors and omissions insurance? A general liability policy typically insures against claims of bodily or personal injury or property damage, sustained by a third party. Professional liability insurance, also known as errors and omissions or E & O insurance, covers negligence as it pertains to the professional services you provide. Thereof, why do I need professional liability insurance? The primary reason for professional liability coverage is that a typical general liability insurance policy will respond only to a bodily injury, property damage, personal injury or advertising injury claim. Other forms of insurance cover employers, public and product liability.What are the types of professional liability insurance?There are two types of professional liability polices: claims-made and occurrence. Most professional liability insurance policies are “claims-made,” meaning that the policy must be in effect both when the event took place and when a lawsuit is filed for a claim to be paid.