Professional Liability

What Is Professional Liability (E&O)?

Professional Liability—also called Errors & Omissions (E&O)—covers financial losses a client claims were caused by your mistake, missed deadline, or bad advice. It’s typically a claims-made policy and can include defense costs. With over 13 years of brokerage experience, our agency helps you meet contract requirements and choose limits that fit your risk.

Who Needs It?

Consultants, IT providers, designers, accountants, real-estate and healthcare professionals, marketing agencies, and many other service businesses that sell expertise or advice. If clients rely on your deliverables or recommendations, E&O is essential.

Professional LiabilityClaims MadeRetroactive DateTail CoverageDefense Costs

How E&O Protects Your Business

One allegation can cost time and money—even if you did nothing wrong. E&O helps pay for legal defense and covered settlements due to alleged negligence, errors, omissions, misstatements, or missed deadlines connected to your professional services.

Mistake

Client loses money due to project delay.

Bad Advice

Recommendation causes client’s financial loss.

Scope Breach

Alleged failure to meet scope obligations.

Data Error

Incorrect report leads to client damages.

What To Know Before You Buy

Most E&O is claims-made: the policy in force when the claim is made responds—if the incident happened after your retroactive date. Consider adding tail coverage when you change carriers or close a business. Match limits/deductibles to contracts, and keep COIs ready for clients.

Claims-Made Policy

Retroactive Date

Tail Coverage

COI & Contracts

Frequently
Asked Questions

How is Professional Liability different from General Liability?

General Liability focuses on bodily injury and property damage. Professional Liability covers financial loss caused by alleged mistakes in your services or advice.
What does “claims-made” mean?

The policy that’s active when a claim is made responds—provided the incident occurred after your retroactive date and you report it within the policy’s reporting rules.
Do I need tail coverage?

Yes, if you switch insurers, pause services, or close a business. Tail coverage lets you report future claims for past work done while your prior policy was active.
What’s not covered?

Intentional wrongdoing, fraud, guarantees of outcome, and most bodily injury/property damage (that’s usually General Liability). Contract penalties and known issues may also be excluded.
How much does E&O cost?

Pricing depends on profession, revenue, claims history, limits/deductibles, and risk controls. Many service firms start with $1M per claim and adjust to contract needs.
How do I file a claim?

Notify us promptly, share your contract, correspondence, and work papers, and avoid admitting liability. We’ll guide you through carrier reporting and next steps.

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