The bad recommendation
A client says your advice led them into a costly decision and demands reimbursement.
E&O can pay for your defense and covered damages.
Professional & Technology Liability
Professional liability & E&O, matched to your client contracts.
Professional liability, also called errors and omissions (E&O), protects firms whose product is advice, expertise or deliverables when a client says your work caused them a financial loss.
What professional liability covers.
General liability doesn't cover these claims. And because E&O is usually written on a claims-made basis, the retroactive date and continuous coverage matter as much as the limit.
- Errors and omissionsClaims of negligence, mistakes or oversights in your professional services.
- Failure to performMissed deadlines and work that falls short of what was promised.
- Defense costsLegal defense, even when the claim has no merit. Many E&O policies pay defense within the limit.
- Prior actsClaims about work performed after your retroactive date, as long as coverage stays continuous.
- Technology E&OFor technology firms, coverage for failures of your software or services, often combined with cyber.
What it typically doesn’t cover
- Bodily injury and property damageThese are typically general liability claims. General Liability & Products Liability Insurance
- Contract promises beyond the policyGuarantees and broad indemnities you sign may exceed what E&O covers.
- Claims after coverage endsWithout continuous coverage or tail, later claims about past work may not be covered.
- Intentional acts and fraudDishonest or deliberate wrongdoing is excluded.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The missed deadline
A deliverable arrives late and the client claims lost revenue.
Professional liability can respond, even if the claim has no merit.
The software bug
An update you shipped causes a client outage.
Technology E&O can cover the client's financial loss claim.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Technology Errors & Omissions (Tech E&O) InsuranceClient claims alleging that your software, technology products or services failed to perform as expected.Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.General Liability & Products Liability InsuranceThird-party bodily injury, property damage and products-related claims.Directors & Officers (D&O) InsuranceProtects company leaders and the organization against claims alleging wrongful management decisions or actions.Questions
Common questions about professional liability, answered.
What's the difference between professional liability and general liability?
General liability covers bodily injury and property damage. Professional liability covers financial loss caused by your professional advice or services. Most service firms need both.
What does claims-made mean?
A claims-made policy covers claims first made while the policy is active, for work performed after the retroactive date. Keeping continuous coverage, and buying tail coverage when you close or switch, protects past work.
Do my clients require E&O?
Many client and enterprise contracts require proof of E&O at specific limits. We review the requirements and confirm your policy satisfies them.
How much does professional liability cost?
E&O premiums depend on your profession and the services you provide, your revenue, the contracts you sign, your claims history, and the limit, retention and retroactive date you choose. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.