What's the difference between professional liability and general liability?

General liability covers physical injuries or property damage caused by your business. Professional liability (also known as E&O) covers financial losses a client suffers due to your professional advice, services, or negligence.

How much professional liability insurance do I need?

Coverage limits typically range from $1 million to $5 million. The right amount depends on your industry, the size of the contracts you handle, and the potential financial impact an error could have on your clients.

Does professional liability cover intentional wrongdoing?

No. Professional liability insurance covers accidental errors, omissions, and negligence. It does not cover intentional fraud, criminal acts, or malicious wrongdoing.

What is 'claims-made' coverage?

Most professional liability policies are 'claims-made,' meaning the policy must be active both when the error occurred AND when the claim is filed. If you cancel your policy, you may lose coverage for past work unless you purchase 'tail coverage'.

Professional Liability Insurance

Protect your business from claims of professional negligence and errors

Get a Quote

What is Professional Liability Insurance?

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, protects professionals and businesses from claims of negligence, mistakes, or failure to deliver promised services.

If a client alleges that your professional advice, services, or work caused them financial harm, this coverage pays for legal defense costs and any settlements or judgments against you.

Essential for service-based businesses, consultants, and professionals who provide advice or expertise to clients.

What Does Professional Liability Cover?

Protection against claims arising from your professional services

Errors & Mistakes

Coverage for unintentional errors or mistakes in your professional work or advice.

Omissions

Protection when you fail to perform services or provide advice you were contracted to deliver.

Negligence Claims

Defense against allegations of professional negligence or substandard work.

Misrepresentation

Coverage for claims that you misrepresented your services or capabilities.

Legal Defense

Pays for attorney fees, court costs, and legal expenses to defend against claims.

Settlements & Judgments

Covers settlement amounts and court-ordered judgments up to policy limits.

Who Needs Professional Liability Insurance?

Essential coverage for service professionals and consultants

Consultants

Business, management, and strategy consultants

Accountants

CPAs, bookkeepers, and tax professionals

Attorneys

Lawyers and legal service providers

IT Professionals

Software developers and tech consultants

Architects

Design and architectural professionals

Engineers

Engineering and technical consultants

Real Estate

Agents, brokers, and property managers

Financial Advisors

Investment and financial planning professionals

Real-World Claim Examples

See how professional liability insurance protects businesses

Accounting Error

An accountant made an error in a client's tax return, resulting in penalties and interest from the IRS. The client sued for $45,000. Professional liability insurance covered the legal defense and settlement.

Software Failure

A software developer's code contained a bug that caused a client's e-commerce site to crash during peak sales season. The client claimed $200,000 in lost revenue. E&O insurance covered the claim.

Consulting Advice

A business consultant's strategic advice led to a failed expansion that cost the client $150,000. The client sued for negligence. Professional liability insurance paid for defense and settlement costs.

Design Flaw

An architect's design oversight resulted in structural issues requiring costly repairs. The building owner sued for $300,000. Professional liability insurance covered the legal costs and settlement.