What is Professional Liability Insurance?

Professional liability insurance, also called errors and omissions (E&O) coverage, protects businesses that provide professional services or advice. When a client claims your work was negligent, contained errors, or failed to deliver promised results, this coverage pays for your legal defense and any resulting settlements or judgments.

If your business provides advice, designs, recommendations, or professional services of any kind, you likely need professional liability coverage.

What Does Professional Liability Cover?

Professional liability covers claims arising from your professional services: negligent acts, errors, omissions, misrepresentation, and breach of professional duty. It pays for legal defense even if claims are groundless, and covers settlements or judgments up to your policy limits.

Who Needs Professional Liability?

Consultants, accountants, architects, engineers, IT professionals, marketing agencies, real estate agents, and many other service providers need E&O coverage. If clients could claim that your advice or work product caused them financial harm, professional liability insurance should be part of your coverage portfolio.