Coverage Guide

Professional Liability Insurance (E&O)

Professional liability insurance — also called errors and omissions (E&O) — covers claims that a business failed to perform professional services correctly, omitted something important, or gave negligent advice that caused a client financial harm. It is the essential coverage for any business that provides professional services, advice, or expertise to clients. Commercial general liability does not cover these claims.

What professional liability covers

Errors and omissions
Mistakes made in the performance of professional services — a consultant who gives wrong advice, an accountant who files an incorrect return, a designer who delivers work that doesn't meet spec.
Negligence claims
Claims that the professional failed to meet the standard of care expected in their field, resulting in financial harm to the client.
Defense costs
Legal defense costs are covered even if the claim turns out to be groundless. Defense costs for professional liability lawsuits can easily exceed $100,000 before trial.
Breach of duty
Claims that a professional violated a duty they owed to a client — fiduciary duty, duty of care, or contractual obligations.

Who needs professional liability

Consultants and advisors
Accountants and CPAs
Architects and engineers
IT and technology firms
Marketing and design agencies
Real estate agents and brokers
Financial advisors
Healthcare professionals
Law firms
Insurance agents and brokers

Claims-made vs. occurrence policies

Professional liability policies are almost always written on a claims-made basis — the policy in force when the claim is filed responds, not the policy in force when the alleged error occurred. This is different from occurrence-based CGL policies.

Claims-made policies require a retroactive date (often called a "retro date") — claims arising from work done before this date are not covered. When a client switches carriers, agents must ensure the new policy's retro date matches or precedes the prior policy's retro date, or purchase tail coverage. See E&O insurance explained for a full breakdown.

How AgencyAssist helps

Professional liability submissions vary significantly by industry. Each specialty — tech E&O, accounting malpractice, architectural E&O — has different underwriting questions and supplemental applications. AgencyAssist collects the right information for each professional's specific risk through a tailored intake link, generating a complete submission package automatically.

Faster professional liability submissions

Collect all the right information from each professional client through one intake link.

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Related

Errors and omissions insurance — complete guideProfessional liability vs. general liabilityCyber liability insuranceCommercial general liability