What is the difference between general liability and professional liability?

General liability covers bodily injury and property damage, the physical stuff that happens when a customer trips in your office.

What is professional liability or errors and omissions (E&O) insurance?

Pays when a service provider's mistake causes a client a financial loss. Like malpractice for non-medical professions.

What specialty commercial classes does Philadelphia Insurance cover in Georgia?

Philadelphia Insurance Companies (PHLY) is backed by Tokio Marine Group and specializes in industry niches.

What insurance do Lawrenceville healthcare professionals need?

Lawrenceville has a large healthcare and medical professional community concentrated around Gwinnett Medical Center.

What do claims-made limits mean on Georgia professional liability?

A claims-made policy only pays if both the incident and the claim are reported while the policy is active, and it uses a retroactive date; tail coverage extends the reporting window after cancellation.

Professional Liability FAQs

How does claims-made coverage work for Georgia professional liability?

All FAQs

Quick answer: Professional liability (errors and omissions) insurance is claims-made, meaning coverage applies only when both the work was performed and the claim is reported.

Claims-made coverage protects you only when a claim is first brought against you while the policy is active, and only for work performed after a specific starting point called the retroactive date. This structure differs from an occurrence policy, where the date of the incident determines coverage regardless of when the claim arrives. Understanding both timing elements is essential for any Georgia professional carrying professional liability insurance, also called errors and omissions.

What is a retroactive date on a claims-made policy?

The retroactive date is the earliest point from which your past work is covered under a claims-made policy. Any professional service performed before that date is not covered, even if the claim arrives while the policy is active. When a policy is first written, the retroactive date is typically set to the policy start date. The longer you maintain continuous coverage with the same carrier, the further back that date can extend, protecting more years of past work. Our FAQ on claims-made versus occurrence policies explains why this timing distinction matters across different professional liability structures.

What happens if a claims-made policy lapses?

A lapse in claims-made coverage creates a gap that can leave years of past work unprotected. If a client files a complaint after the policy expires and no tail coverage was purchased, the claim may not be covered even for work completed while insured. This is a common exposure for Georgia professionals who change careers, retire, or switch carriers without addressing the gap.

For example, a Georgia accountant prepares a tax return in 2024 under an active claims-made policy. In 2026, the client sues over a $75,000 error. If the accountant kept the policy active or purchased tail coverage when switching carriers, the claim is covered. If the policy lapsed with no tail and no retroactive coverage on the new one, the accountant pays defense costs and any settlement out of pocket.

What is tail coverage and when do Georgia professionals need it?

Tail coverage, also called an extended reporting period, allows claims to be reported for a defined window after a claims-made policy ends, covering work that was in force during the policy period. Professionals typically need it when retiring, closing a practice, or switching to a new carrier that will not honor the prior retroactive date. The cost is often a multiple of the annual premium, so factoring it into any career or carrier transition avoids an unexpected bill. Our FAQ on what professional liability insurance covers explains the broader protection this policy type provides for Georgia service providers.

How does full prior acts coverage protect past work?

When switching to a new claims-made carrier, you can ask the new insurer to honor your existing retroactive date rather than resetting it to the new policy start date. This is called full prior acts coverage. When the new insurer agrees, years of past work remain protected under the new policy and tail coverage on the old one may not be needed. If the new insurer sets a later date instead, tail on the old policy becomes the only safety net for the gap years.

For example, a Georgia architect has carried professional liability since 2018. When switching carriers in 2026, she asks the new insurer to match her 2018 retroactive date. The insurer agrees, covering eight years of prior work under the new policy without any tail purchase on the old one.

What should I verify before switching professional liability carriers in Georgia?

Confirm three things before the old policy expires: the retroactive date the new carrier will honor, whether tail is available on the old policy and at what cost, and the exact effective date of the new policy. Even a one-day gap can leave a complaint unresolved. Walking through these dates during a coverage review is the practical way to confirm no gap exists before a switch. A free review at Olive Cover covers retroactive dates, tail options, and continuity across any carrier change.