PROFESSIONAL LIABILITY INSURANCE
Professional liability insurance for the work you actually do.
General liability covers bodily injury and property damage. It does not cover claims that your professional advice, design, service, or work caused a client to lose money. That is what professional liability (errors and omissions) covers.
What it covers
What professional liability covers.
What it covers
Errors and omissions in professional work
Pays defense and damages when a client claims your work, advice, or service was negligent or fell below professional standards and caused them financial loss. This is the core of an errors and omissions policy.
What it covers
Defense costs
Pays legal defense in covered claims. Defense costs alone can exceed $50,000 even on a claim that ultimately gets dismissed. Defense coverage is often the most important part of an errors and omissions policy, since it pays your liability legal bills whether or not the claim has merit.
What it covers
Subpoena and regulatory response
Many policies cover the cost of responding to a subpoena or regulatory inquiry related to your professional work, even before a formal claim is filed.
What it covers
Personal injury and advertising injury
Some errors and omissions policies include coverage for libel, slander, copyright infringement, and similar claims that arise out of professional work and communications.
Where policies have edges
What professional liability does not cover.
Not covered
Bodily injury and property damage
Physical injury to people or damage to property is excluded from errors and omissions. Those claims fall under general liability. The line between the two matters and is sometimes disputed at claim time.
Not covered
Intentional or fraudulent acts
Deliberate fraud, intentional misrepresentation, or intentional violation of law is excluded. Defense costs are sometimes covered until intent is established.
Not covered
Prior acts before the policy retroactive date
errors and omissions is usually claims-made coverage with a retroactive date. Claims arising from work performed before the retroactive date may not be covered. Maintain continuous errors and omissions coverage when possible.
Not covered
Contractual liability assumed beyond reasonable scope
Contracts that obligate you beyond what professional standards require may not be fully covered. Read indemnification and hold-harmless clauses carefully and have your agent review high-stakes contracts.
Who needs this
Who needs Professional Liability Insurance (Errors and Omissions)?
Anyone who provides professional advice, design, service, or work that clients rely on. Consultants, accountants, financial advisors, architects, engineers, designers, IT services, lawyers, property professionals, healthcare providers, and many others. Technology firms often pair this with cyber liability coverage, and company directors and officers may also need management liability. Many client contracts require errors and omissions coverage. Some professions require it under state licensing rules.
What it costs
What can you expect to pay?
Varies dramatically by profession, revenue, prior claims, and limit structure. Most small professional services pay between $500 and $5,000 per year for $1M of errors and omissions coverage. High-risk professions cost significantly more.
Requirements by state
How does this work in your state?
Professional Liability Insurance (Errors and Omissions) rules, regulatory requirements, and available coverage vary by state. Send us your state and details through a free coverage review and we will confirm what applies to you.
If You Need to File a Claim
Claims tips
An errors and omissions claim usually starts as a complaint, a demand letter, or a subpoena. What you do in the first week often determines how the claim resolves over the next two years.
- Notify your errors and omissions carrier immediately. errors and omissions is almost always claims-made coverage. Notice triggers coverage. Even a written complaint that has not become a formal claim should be reported. Late notice is a leading cause of denial.
- Do not respond to the complaint or attempt to fix the alleged problem. Your instinct will be to defend your work or offer to make it right. That can create admissions and waive privilege. Wait for assigned defense counsel before responding.
- Preserve everything related to the engagement. Emails, contracts, deliverables, internal notes, drafts, time records, and any client communications. Your defense relies on the documentary record.
- Do not alter or backfill records. Cleaning up your file after a complaint is one of the worst things you can do. It shows up in metadata and destroys credibility. Whatever exists, exists.
- Cooperate fully with the carrier and assigned defense counsel. The carrier provides defense in covered claims. Cooperate fully, follow counsel's guidance, and do not communicate independently with the claimant. See our claims guidance for what to expect.
- Track every internal hour spent on the matter. Some errors and omissions policies have provisions for reimbursing internal time spent responding to claims. At minimum, this documentation supports your defense.
OUR CARRIER PANEL
Carriers We Work With
The carriers we compare are licensed and regulated in your state. We shop these markets and present the options that match your situation; a licensed advisor reviews the fit with you in a free coverage review.
Chubb Commercial Insurance
Mid-market and specialty commercial insurance for established businesses above $5M revenue.
Learn moreCNA Commercial Insurance
Mid-market commercial package, professional liability, and workers comp for businesses above $1M revenue.
Learn moreHanover Commercial Insurance
Small and mid-market commercial insurance through independent agents.
Learn moreLiberty Mutual Commercial
Multi-line commercial insurance for small to mid-market businesses. business owners policy, workers comp, commercial auto, and cyber from a
Learn moreNext Insurance
Tech-driven small business commercial insurance for tradespeople, independent contractors, and service businesses with fast online underwrit
Learn morePhiladelphia Insurance Companies
Specialty commercial insurance for nonprofits, religious institutions, habitational, and specialty commercial property.
Learn moreThe Hartford Commercial Insurance
The Hartford's Spectrum business owners policy is one of the broadest small business policies available. An honest review of their commercia
Learn moreTravelers Commercial Insurance
Travelers is one of commercial carriers reviewed by Olive Cover. business owners policy, general liability, workers comp, c
Learn moreCoverage Types
Common Questions
Professional Liability Insurance (Errors and Omissions): frequently asked questions
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 does claims-made mean on a professional liability policy?
Claims-made policies cover claims reported during the policy period, regardless of when the error occurred, as long as it happened after the retroactive date.
Do I need professional liability if I am an LLC?
An LLC protects your personal assets from most business liabilities, but it does not stop a client from suing the business itself for professional errors.