Professional Liability Insurance
Shield your business from costly claims of professional negligence, errors, and omissions with specialized coverage for service providers and consultants.
What is Professional Liability Insurance?
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and professionals from claims of inadequate work, negligence, or mistakes in the services they provide.
Unlike general liability insurance which covers bodily injury and property damage, professional liability focuses on protecting you from financial harm resulting from your professional advice, services, or work product.
What Does Professional Liability Cover?
Professional Negligence
Protection when clients claim you failed to deliver services with the expected level of professional skill and care.
Errors and Omissions
Coverage for mistakes, oversights, or failure to deliver promised services that result in financial loss for clients.
Misrepresentation
Defense costs if you're accused of providing inaccurate information or advice that caused client harm.
Legal Defense
Covers attorney fees, court costs, and settlement expenses even if claims are unfounded.
Who Needs Professional Liability Insurance?
Any business or individual that provides professional services, advice, or expertise should consider professional liability insurance:
Real-World Examples
IT Consultant
A consultant recommends software that doesn't meet the client's needs, causing the client to lose $50,000 in productivity. Professional liability insurance covers the claim.
Marketing Agency
An agency accidentally uses copyrighted material in a client's campaign, resulting in a copyright infringement lawsuit. Coverage helps pay legal defense costs.
Accountant
An accountant makes an error on a tax return that triggers an IRS audit and penalties for the client. Professional liability insurance covers the financial damages.
Coverage Limits & Cost
Professional liability insurance costs vary based on:
- •Industry and risk level: Higher-risk professions pay more
- •Annual revenue: Larger businesses typically pay higher premiums
- •Coverage limits: $1M/$1M to $5M/$5M per occurrence/aggregate
- •Claims history: Past claims increase premiums
$500 - $5,000/year
Typical range for small to medium professional services firms
Common Exclusions
Professional liability insurance typically does NOT cover:
- ×Intentional wrongful acts or fraud
- ×Bodily injury or property damage (covered by general liability)
- ×Known circumstances before policy inception
- ×Criminal acts or illegal activities
- ×Employment-related claims (requires EPLI coverage)
Get Your Quote
Compare professional liability rates and find coverage tailored to your profession.
What coverage level do you need?
Choose the protection that matches your requirements