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Key Components:
Legal defense costs: Professional liability insurance should pay for any resulting judgments against you, including court costs up to the coverage limits on your policy.
Coverage extends to W2 employees and 1099 subcontractors: Professional liability insurance coverage should protect your company from claims resulting from the work done by your own employees, as well as work done by 1099 subcontractors on your behalf. The 1099 personnel still need their own errors and omissions insurance because your policy may not defend them if they are sued separately or in addition to you.
Optional coverage for allegations of intellectual property infringement and copyright infringement: Intellectual property infringement coverage protects you against claims alleging copyright infringement. Processes, systems and software are some of the most commonly known "intellectual properties" that may be infringed upon.
Personal injury: Personal injury protects you against claims of libel, slander or invasion of privacy.
Worldwide coverage, if the suit is brought in the United States.