Business Insurance
Professional Liability
Coverage for claims alleging errors or omissions in your professional services.
Coverage overview
Professional liability (errors and omissions) coverage generally responds to claims alleging financial harm from a professional service, mistake, or failure to deliver services as expected.
It's common for consultants, technology providers, accountants, designers, and other advisors. Coverage forms and definitions of professional services vary by industry and carrier.
Who may need this coverage
- Consultants and professional service firms
- Technology and creative service providers
- Accountants, advisors, and designers
- Businesses required by contract to carry E&O
Common coverage considerations
- Claims-made vs. occurrence coverage forms
- Retroactive date and extended reporting periods
- Whether defense costs are inside or outside the limits
- The definition of covered professional services
- Industry-specific exclusions
What may not be covered
- Bodily injury and property damage (general liability)
- Intentional or dishonest acts
- Employee injuries (workers' compensation)
- Matters outside the defined professional services
Factors that may affect price or eligibility
- Your profession and the services you provide
- Revenue and the size of typical engagements
- Coverage limits, deductible, and retroactive date
- Claims history and risk-management practices
Information commonly needed for a quote
- A description of your professional services
- Annual revenue and typical client contracts
- Any prior E&O coverage and retroactive date
- Claims or circumstances history
A practical example
A consultant's client alleges that an error in deliverables caused a financial loss and brings a claim. Professional liability may help with defense costs and covered damages, subject to the policy's form, limits, and retroactive date.
Questions to ask a licensed professional
- Is my policy claims-made, and what is my retroactive date?
- Are defense costs inside or outside my limit?
- Does the definition of professional services fit my work?
- What happens to coverage if I switch carriers?
Frequently asked questions
This page is a general educational summary and does not change, replace, or create insurance coverage. Coverage terms, conditions, limits, exclusions, eligibility, and availability vary by policy, carrier, state, and underwriting requirements. Coverage is not effective unless confirmed in writing by an authorized insurance carrier or properly licensed insurance professional.
Let's Protect What Matters to You.
Tell us what you need to protect, and a licensed insurance professional can help you explore available options.