Professional Liability Insurance

Business Insurance for Professional Liability

Professional liability insurance, also known as errors and omissions or E&O insurance, protects your business from claims alleging negligence, mistakes, or failure to deliver promised services. This coverage is essential for consultants, advisors, and service professionals whose work involves expertise and professional judgment.

Why Your Business Needs This

• Even small mistakes in professional services can lead to massive client losses
• Defense costs for negligence claims can exceed the settlement amount
• Clients increasingly require proof of E&O coverage before engagement
• Your reputation and livelihood depend on protection from allegations

What It Covers

Coverage includes claims of professional negligence or errors in your work, omissions or failure to perform contracted services, misrepresentation of your capabilities or services, violation of good faith and fair dealing, and inaccurate professional advice. The policy covers legal defense costs, settlements, and judgments. Coverage applies to claims made during the policy period, regardless of when the work was performed.

Who Needs Professional Liability Insurance?

Consultants, accountants, lawyers, real estate agents, insurance agents, architects, engineers, technology professionals, marketing agencies, and healthcare providers all need professional liability coverage. If clients rely on your expertise and advice, you need this protection.

What's the Difference Between Claims-Made and Occurrence Coverage?

Most professional liability policies are claims-made, meaning the claim must be reported during the active policy period. Occurrence coverage, more common in general liability, covers incidents that occurred during the policy period regardless of when the claim is made.