Final answer:
The purpose of professional liability insurance is to protect against lawsuits arising from claims of professional negligence, not for covering personal property damage, income loss due to injury, or theft of equipment. It is a financial safeguard for professionals in the face of legal claims against their service.
Step-by-step explanation:
The purpose of professional liability insurance is specifically to protect professionals, such as massage therapists, against lawsuits that may arise from claims of professional negligence. This form of insurance is a method of protecting a person from significant financial loss in such events. Professional liability insurance does not typically cover damage to personal property, loss of income due to injury, or theft of equipment, which are covered by other types of insurance policies.
For instance, workman's compensation insurance is designed to provide benefits to workers who suffer an injury on the job, helping with the loss of income due to injury, but it's distinct from professional liability insurance. Moreover, it's important to note that having insurance can sometimes lead to a moral hazard, where insured individuals are less vigilant in preventing the insured event from occurring because they know they are covered.