Professional Liability / Errors and Omissions Insurance

Professionals or their staff can make an error or omission that financially harms a client. Mistakes do happen. Even if the professional services are completely delivered, a disgruntled client may bring a lawsuit against you.

While general liability insurance is focused on property damage or bodily injury, errors and omissions insurance, known as professional liability insurance, defends and indemnifies your company if a client claims that your erroneous services caused them to incur financial loss.

Many professional service companies choose to purchase E&O insurance policies, which are typically issued in coverage limits of $1 million and higher and have per-claim deductibles ranging from $1,000 to $25,000.

Most professional liability insurance policies are written on a “claims-made” basis. This means that the insurance only covers work performed while the policy is in force, and for claims actually filed during an in force term of the policy. If you cancel your E&O insurance policy without arranging for an extended reporting period, or a new policy with a retro-active coverage effective date, your coverage will cease. Any claims submitted after the cancellation date of the policy would not be covered, even if the work was performed while the policy was in effect.

We will discuss your exposures with you and help you select the most comprehensive coverage at the best value. Our agents strive to help you understand the coverage limits and deductible options available from companies specializing in professional liability.