Professional Liability Insurance

Business mistakes—or even just accusations of negligence—can lead to costly legal claims. Whether or not you’ve actually made an error, a client could still claim that your service or advice caused them financial harm. Professional liability insurance, also known as errors and omissions (E&O) insurance, helps protect your business if a client claims your advice, service, or professional work resulted in a loss. It’s essential coverage for anyone whose business is built on expertise or advice.

What is professional liability insurance?

Professional liability insurance helps cover the cost of defending your business if you're accused of negligence, errors, or omissions in the services you provide. Even if the claim has no merit, legal fees alone can be costly. This coverage ensures you have protection whether or not you’re found at fault.

What does it cover?

Professional liability insurance typically helps cover:

  • Alleged or actual negligence

  • Misrepresentation in your professional services

  • Claims stemming from work performed in the past (depending on your policy)

It may help pay for:

  • Attorney fees and defense costs

  • Settlements or court-ordered judgments

This coverage is tailored to service-based businesses where advice, accuracy, or expertise is part of the job.

Who needs it?

You should strongly consider professional liability insurance if:

  • You provide services or expertise for a fee

  • Your work involves giving professional advice or recommendations

  • Clients require you to carry E&O insurance as part of a contract

Professions that often carry this coverage include consultants, real estate agents, financial advisors, insurance brokers, designers, IT professionals, and many others.

Even if you’ve done everything right, defending your business from a lawsuit can be expensive—and time-consuming. E&O insurance helps give you peace of mind.

To secure professional liability insurance:

  • Gather Business Info
    Prepare documents like resumes, client contracts, employee handbooks, and financial statements.

  • Detail Your Risk Management
    Provide information about your internal procedures, quality control, and staff training—this can help you secure better rates.

  • Talk to a Licensed Broker
    An experienced insurance professional can guide you through your options and help you find the right coverage for your specific industry.

Being organized and proactive can help you get the protection you need at a competitive rate.

How do I get started?

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