New York Insurance Exam Practice Question

Correct Answer: D

Rationale: Professional liability insurance specifically protects individuals and businesses from claims of negligence, errors, or omissions in their professional services. This type of insurance is essential for professionals like doctors, lawyers, and consultants, as it covers legal fees and damages resulting from lawsuits related to their work.

Option A, liability insurance, is a broader category that includes general liability but does not specifically address professional errors. Option B, property insurance, protects physical assets rather than professional conduct. Option C, workers' compensation insurance, covers employee injuries on the job, not professional mistakes. Thus, only professional liability insurance directly addresses errors or negligence in professional services.