Professional Liability / E&O Insurance

Professional liability insurance (errors & omissions) protects against claims of negligence, mistakes, or failure to deliver services. Quote from RISKX.

Protection when your expertise is questioned.

Professional liability insurance — also called Errors & Omissions (E&O) — protects your business when a client claims your professional services or advice caused them financial harm. It covers legal defense, settlements, and judgments even when the claim has no merit.

What Professional Liability / E&O Insurance Covers

Professional Errors

E&O insurance covers your legal defense and any damages awarded, whether the mistake was real or merely alleged.

Negligent Acts

Your policy covers the cost of defending against negligence claims and any resulting settlements.

Failure to Deliver

Professional liability covers claims arising from missed deadlines, incomplete work, or unmet contractual obligations.

Who Needs This Coverage?

Any business that provides professional services, advice, or expertise to clients. If someone pays you for your knowledge, you need E&O coverage.

What Happens Without It

An accounting firm files a client's taxes with an error that triggers an IRS audit. The client sues for $200,000 in penalties, interest, and legal fees. Without E&O coverage, the accounting firm pays for its own defense attorney plus any judgment — costs that can easily exceed annual revenue.

Real-World Example

A web developer builds an e-commerce site that crashes during a client's biggest sales event. The client claims $75,000 in lost revenue. The developer's professional liability policy covers the legal defense and negotiated settlement, preserving the business and professional reputation.

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