Professional liability insurance protects you and your company from a potential lawsuit by a client. For example, if your company offers advice to a client that causes him to lose a substantial amount of money, he may file a claim against you--which will cost you dearly if you don't have professional liability insurance. Having this insurance will protect you from claims involving negligence, breach of contract and misleading advice. Professional liability insurance will not cover claims involving bodily injury or property damage, as those are covered by your company's general liability insurance.