---
title: "What Insurance Covers Bad Professional Advice?"
description: "Professional liability may cover a client’s claim that bad advice in a covered service caused financial loss, while intentional conduct and redo costs may be excluded."
canonical: "https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-bad-advice"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# What Insurance Covers Bad Professional Advice?

Professional liability may cover a client’s claim that bad advice in a covered service caused financial loss, while intentional conduct and redo costs may be excluded.

Professional liability may cover a client’s claim that bad advice in a covered service caused financial loss, while intentional conduct and redo costs may be excluded. Texas Department of Insurance describes professional liability as protection for claims arising from professional services, including mistakes that cause a client loss.

Ask whether the policy covers the specific advice and services you provide, and whether damages include refunds, rework, or contractual guarantees. Check exclusions for intentional conduct, known circumstances, and liabilities assumed only by contract.

## Related Questions

- [What Insurance Covers Professional Mistakes?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-professional-mistakes)
- [What Insurance Covers a Missed Professional Deadline?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-missed-deadlines)
- [What Insurance Covers AI Errors and Hallucinations?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-ai-errors)
- [What Insurance Covers Employee Theft and Embezzlement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-employee-theft)

## Related Coverage

- [Professional errors and omissions (E&O)](https://spot.insure/coverage/professional-errors-omissions)

## Sources

1. [FAQ: Professional liability insurance](https://www.tdi.texas.gov/commercial/pl-faq.html). Texas Department of Insurance; What’s professional liability coverage?; What types of damages does it cover?; claims-made and occurrence policies. Accessed 2026-09-25.
2. [Professional Liability – US Direct Errors and Omissions Insurance](https://www.hiscox.com/documents/pl-sample-policy-wording.pdf). Hiscox Inc. specimen; Coverage for Claims Made Against You, PDF pp.1–2; insuring agreement and reporting requirements. Accessed 2026-09-25.

More answers: [What Insurance Covers FAQ](https://spot.insure/insurance-faq/what-insurance-covers).

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