Commercial Insurance
Professional Liability & E&O — When Your Expertise Is On the Line
If you provide advice, services, or expertise for a fee, your General Liability policy won't protect you from professional mistakes. E&O, D&O, EPLI, and Cyber coverages fill that gap — and we write all of them.
What is Professional Liability Insurance?
Also known as Errors & Omissions (E&O) insurance, professional liability covers claims arising from mistakes, oversights, or failures in the professional services you provide. General liability doesn't cover this — if you give advice, render services, or provide expertise for a fee, you need E&O.
Errors & Omissions (E&O)
Covers claims that you made a mistake, missed a deadline, gave incorrect advice, or failed to deliver the standard of service your client expected.
Legal Defense Costs
Professional liability covers your legal defense costs even if the claim against you is completely groundless. Defense costs alone can reach six figures in a contested lawsuit.
Claims-Made Coverage
E&O is written on a claims-made basis — the policy must be in force when the claim is filed, not when the alleged error occurred. This is why continuous coverage and retroactive dates matter.
Settlements & Judgments
If a claim goes against you, professional liability covers settlements and court-ordered judgments up to your policy limits — protecting your business assets.
Who needs E&O coverage?
- Consultants and advisors
- Technology companies and IT services
- Real estate agents and brokers
- Insurance agents and financial advisors
- Accountants and CPAs
- Architects and engineers
- Marketing and PR agencies
- Medical and healthcare providers
- Attorneys and law firms
Related Professional & Management Liability Coverages
Depending on your business, you may need one or more of these alongside E&O.
Errors & Omissions (E&O)
Professional mistakes, missed deadlines, negligent advice. The core coverage for any service-based business.
- Defense costs included
- Claims-made policy
- Industry-specific forms available
Directors & Officers (D&O)
Protects executives, board members, and officers from personal liability for decisions made on behalf of the organization.
- Side A: personal asset protection
- Side B: company reimbursement
- Side C: entity coverage (public companies)
EPLI — Employment Practices
Covers claims from employees for wrongful termination, discrimination, harassment, and retaliation. Often overlooked by small businesses.
- Wrongful termination claims
- Sexual harassment claims
- Discrimination allegations
Cyber Liability
Data breaches, ransomware, and network security failures. As digital threats grow, cyber is increasingly essential for any business that stores client data.
- First-party breach response costs
- Third-party liability claims
- Business interruption from cyber events
Product Liability (PL)
For businesses that manufacture, distribute, or sell physical products. Covers claims arising from product defects that cause injury or damage.
- Design defect claims
- Manufacturing defect claims
- Failure to warn claims
Fiduciary Liability
For businesses that sponsor employee benefit plans. Covers claims alleging a breach of fiduciary duty in the management of 401(k), pension, or health plans.
- Plan administration errors
- Investment selection liability
- Required for most plan sponsors
Common Questions
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General Liability covers third-party bodily injury and property damage — physical harm. E&O covers financial harm caused by your professional mistakes or failures. A web developer's GL won't cover a client's losses if the developer built the wrong functionality. The developer's E&O will. Most professional service businesses need both.
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Unlike occurrence-based policies, claims-made E&O only covers you if the policy is active when the claim is filed. This means you need continuous coverage — and if you retire or close your business, you may need an 'extended reporting period' (tail coverage) to remain protected for past work.
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Cost varies significantly by profession, revenue, and history. A solo consultant might pay $500–$1,500/year. A technology company might pay $2,000–$10,000+. We'll help you get the right coverage without overpaying.
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E&O is generally not required by law, but it is frequently required by clients — especially larger corporations and government entities that require proof of insurance before signing contracts. It's also often required by professional licensing boards for regulated professions.
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Yes — because clients can still file claims even if you haven't made a mistake. Defense costs for a groundless claim can be significant, and E&O covers your legal fees regardless of whether the claim has merit.