Professional Liability Insurance (Errors & Omissions)
When clients hire you for your knowledge, advice, skill, or professional services, they expect you to get it right. But even experienced professionals can face allegations that their work caused a financial loss, contained an error, or failed to meet a client’s expectations.
Professional liability insurance, also known as Errors & Omissions (E&O) insurance, can help protect your business against certain claims arising from the professional services you provide.
What can professional liability insurance cover?
Professional liability coverage is designed around risks that are different from the bodily injury and property damage exposures addressed by general liability insurance.
Depending on the policy and the nature of your business, coverage may respond to certain claims alleging:
Errors or mistakes in your professional work
Negligence in providing professional services
Failure to perform a professional service as expected
Inaccurate advice or information
Missed deadlines or oversights
Alleged financial losses resulting from your professional services
Claims of inadequate or incomplete work
Defense costs associated with covered claims, subject to the policy's terms and limits
Coverage varies considerably by profession and policy. Not every allegation or business dispute will be covered.
Who might need professional liability insurance?
Professional liability can be relevant to businesses whose clients rely on their expertise, advice, analysis, recommendations, designs, or other professional services.
Depending on the specific policy and underwriting requirements, this can include:
Consultants
Business and management professionals
Marketing and creative professionals
Technology and IT professionals
Designers
Accountants and financial professionals
Real estate professionals
Professional service firms
Independent contractors providing specialized expertise
Other businesses whose primary product is their knowledge or professional service
The appropriate coverage depends on what you do, who you serve, what you promise to deliver, and the contractual obligations you accept.
What about contractual requirements?
Some clients, landlords, general contractors, or other business partners may require you to carry professional liability insurance as part of a contract.
You may also be asked to provide a Certificate of Insurance (COI) demonstrating that coverage is in place.
If a client or contract specifies particular limits or coverage requirements, I can help you review those requirements and explore available options.
How much professional liability insurance do I need?
There isn’t one appropriate limit for every business.
The right amount can depend on factors such as:
The type of professional services you provide
The size and complexity of your business
The clients you serve
The potential financial impact of an error or omission
Your contracts and client requirements
Your annual revenue
The amount of work you perform
Your tolerance for retaining risk
A client contract may also specify minimum limits.
I can help you review your professional activities, contractual requirements, and potential exposures when evaluating appropriate coverage limits.
What isn’t covered?
Professional liability policies are not designed to cover every disagreement between a business and its clients.
Depending on the policy, exclusions and limitations may apply to things such as:
Intentional or fraudulent acts
Known circumstances or claims that existed before the policy began
Certain contractual obligations
Bodily injury or property damage that falls under other types of coverage
Employment-related claims
Certain cyber or privacy-related exposures
Other exclusions specific to the profession or policy
The exact coverage depends on the policy language, endorsements, exclusions, limits, and circumstances of the claim.
If your business has several different types of exposure, professional liability may be one component of a broader insurance program.
What can I do?
Professional liability insurance isn’t one-size-fits-all. The appropriate policy depends heavily on the professional services your business provides.
I can help you review:
What professional services you provide
Who your clients are
Your contracts and insurance requirements
Your annual revenue and business operation
The types of claims your profession may face
Appropriate liability limits
Whether other coverage may be appropriate alongside E&O
Together, we can look at your professional exposures and explore insurance options designed around the work your business actually performs.
Protect the expertise your clients rely on.
Your professional knowledge is one of your business’s most valuable assets. Professional liability insurance can help protect your business when a client alleges that your professional services resulted in a financial loss.
At this link, please select Professional Liability under the Commercial category when submitting your quote request.
Carriers I offer coverage with:
Professional Liability coverage available in*:
California
Texas
Washington
*Licensing does not guarantee that every insurance product or carrier is available in every state. Carrier appointments, underwriting requirements, product availability, and eligibility vary by state and by individual risk.
If I am not currently licensed to offer the insurance solution(s) you are seeking in your state, I may be able to obtain the necessary licensing or connect you with a licensed professional who can assist you.