What Is Professional Liability (E&O)?
Professional Liability, also known as Errors & Omissions (E&O) insurance, is designed to respond when a client alleges that your professional advice, service, or work product caused them a financial loss — even if no physical injury or property damage occurred. It's typically written on a claims-made basis.
Who Needs It
Any business that provides advice, expertise, or professional services for a fee can benefit from E&O coverage. This includes consultants, accountants, IT professionals, real estate professionals, marketing agencies, and many other service-based businesses.
Real-Life Claim Scenarios
Accounting Error Leads to a Tax Penalty
A client alleges that an accounting error resulted in a costly tax penalty. Professional liability coverage may help with legal defense and any resulting settlement, subject to policy terms.
IT Consultant's Recommendation Causes Downtime
A client claims that a system recommended by an IT consultant caused extended downtime and lost revenue. E&O coverage may help respond to the resulting claim.
Missed Filing Deadline
A professional service firm misses an important filing deadline, causing a client financial harm. Professional liability may help cover the defense and settlement costs, subject to the policy's terms.
Design Firm's Plans Contain an Error
A design professional's plans contain an error that leads to costly rework. E&O coverage may help address the resulting claim of professional negligence.
Client Alleges Under-Delivered Services
A dissatisfied client claims that promised services were not fully delivered as agreed. Professional liability coverage may help with the cost of defending against the allegation.
What It May Help Cover
- Defense costs for professional negligence claims
- Settlements and judgments for covered claims
- Errors, omissions, and mistakes in professional services
- Allegations of failing to deliver promised services
- Claims brought by dissatisfied clients
- Prior acts coverage, when included, on a claims-made basis
Coverage Limitations
Professional liability is typically written on a claims-made basis, meaning the policy in force when a claim is reported generally applies, subject to any retroactive date. It does not cover bodily injury or property damage, which fall under general liability, and coverage terms vary by profession and state.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Description of professional services provided
- Annual revenue and number of professionals/staff
- Client contract requirements for E&O limits
- Years of experience in the profession
- Prior E&O claims or lawsuits
- Whether you need prior acts (retroactive) coverage
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to professional liability (e&o)? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Professional Liability (E&O) Quote
Tell us about your business and a Casurance specialist can help you review Travelers professional liability (e&o) options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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