- Se Habla Español
- FL Agency License L016633
Professional liability
If clients pay for your advice, expertise or professional services, a mistake or a missed deadline can lead to a lawsuit. Errors and omissions coverage pays for your defense and any settlement.
The short answer
Professional liability insurance, also called errors and omissions or E&O, covers claims that your professional work or advice caused a client a financial loss, through a mistake, oversight or failure to deliver what was promised. General liability doesn’t cover these claims. Most E&O policies are written on a claims-made basis, so keeping coverage continuous matters.
A claims-made policy covers claims made while the policy is active, for work done after its retroactive date. If you switch carriers, keep your retroactive date so past work stays covered. If you close or sell the business, ask about tail coverage for claims that come in later.
General liability covers physical injuries and property damage. Professional liability covers financial losses caused by your professional services or advice. Many service businesses need both.
Some licenses, professional associations and client contracts require it. Even when it isn’t required, one claim can cost far more than years of premiums.
It covers work done after the policy’s retroactive date, as long as the claim is made while the policy is active. Keeping continuous coverage protects past work.
