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Coverage Guide

Professional Liability / E&O Insurance

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 It Covers.

Professional Errors

The Risk

You deliver a project that contains an error — a miscalculation, a missed deadline, or flawed advice — and your client suffers a financial loss as a result.

The Solution

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

Negligent Acts

The Risk

A client claims you failed to perform services with the standard of care expected in your profession, even if you believe you did everything right.

The Solution

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

Failure to Deliver

The Risk

A project runs over schedule or doesn't meet the client's expectations, and they claim your delay or shortfall cost them revenue.

The Solution

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

Who Needs This?

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

  • Architects, engineers, and design firms
  • IT consultants and software developers
  • Accountants and financial advisors
  • Real estate agents and brokers

What Happens Without It?

Scenario

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.

Consequence

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.

Situation

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.

Outcome With Coverage

The developer's professional liability policy covers the legal defense and negotiated settlement, preserving the business and professional reputation.

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