What it is
Professional liability insurance, also called errors and omissions (E&O), helps with claims that your professional services were negligent, inaccurate or incomplete and cost a client money. It can help pay legal defense costs as well as covered settlements or judgments.
General liability generally does not cover mistakes in professional advice or services, which is why the two are often bought together.
What it may cover
- Claims of negligence, errors or omissions in your services
- Claims about inaccurate advice or missed deadlines
- Legal defense costs, even if the claim turns out to be unfounded, subject to the policy terms
Who may need it
You may need this coverage if:
- You give advice, design work, consulting or other professional services
- Clients or contracts ask for proof of professional liability
- A mistake in your work could cost a client a lot of money
Coverage, limits, exclusions and eligibility vary by insurance company and policy, so the policy wording is what counts.
Questions worth asking
- Is the policy claims-made, and what is the retroactive date?
- Does it cover past work if I switch insurance companies?
- What is my deductible and does it apply to defense costs?
- Do my contracts ask for specific limits?
Related coverage
Reviewed by a licensed agent. A licensed CBIS agent goes over this section with you, so you only look at what fits your business.
Ready to talk it through? Call (858) 283-7575 or book a free call with a licensed agent. Not sure this is the right coverage? Start with our guide: what insurance does my business need?