Professional Liability & Errors and Omissions Insurance

Protect the Advice, Services and Expertise Your Business Provides.

When customers rely on your expertise, a mistake, missed deadline or allegation of inadequate professional services can lead to a costly claim. Briteline can compare professional liability and errors and omissions insurance across available commercial markets.

Get an E&O Quote Talk to an Agent

What Can Professional Liability Protect?

Coverage varies by profession and policy, but professional liability is designed around claims arising from professional services rather than ordinary premises or property damage risks.

Errors

Can help address certain covered allegations that a mistake in professional services caused financial harm to a customer or other qualifying party.

Omissions

Coverage may apply to certain claims alleging that your business failed to perform a required professional service or overlooked an important obligation.

Negligence Allegations

Professional liability can respond to certain covered allegations that professional services failed to meet an applicable standard or contractual expectation.

Legal Defense

Subject to policy terms, coverage can help with defense costs associated with covered professional liability claims, even when the allegations are disputed.

General Liability and E&O Protect Different Risks.

General liability is primarily designed for certain third-party bodily injury, property damage and personal or advertising injury exposures.

Professional liability is designed around claims alleging financial harm caused by professional advice, services, errors or omissions.

Many service businesses need both.

Example

The Client Says Your Advice Cost Them Money.

There may be no bodily injury and no damaged property. The allegation is that your professional service caused a financial loss. That's the type of exposure that can make professional liability coverage important.

Professional Liability Details Worth Reviewing

E&O policies can differ substantially between carriers. The details matter as much as the headline liability limit.

Covered Services

The policy should accurately describe the professional services your business actually provides. New or expanded operations should be disclosed.

Retroactive Date

Many claims-made policies use a retroactive date that can affect whether prior professional services are eligible for coverage.

Defense Costs

Defense costs may be handled differently between policy forms, including whether they reduce available liability limits.

Deductible / Retention

The amount your business must absorb before or during a covered claim can vary significantly between professional liability policies.

Contractual Liability

Contracts can create obligations that exceed what an insurance policy covers. Client agreements and insurance should be reviewed as separate but related risk-management issues.

Prior Acts

When moving carriers, maintaining appropriate prior-acts protection can be important for claims arising from services performed before the current policy began.

Extended Reporting

Certain circumstances may make an extended reporting period important when claims-made coverage ends or changes.

Cyber Overlap

Technology and professional liability exposures can overlap. Businesses handling data or providing technology services should review whether separate cyber coverage is also needed.

Contract Requirements

Clients may require specific E&O limits, policy features or proof of coverage before signing a contract or allowing work to begin.

Many Professional Liability Policies Are Claims-Made.

With claims-made coverage, timing can matter. The date the professional service occurred, the policy's retroactive date and when a claim is made or reported can all affect coverage.

Retroactive Date

Professional services performed before the applicable retroactive date may not qualify for coverage.

Continuous Coverage

Allowing claims-made coverage to lapse can create gaps that are difficult or expensive to repair later.

Reporting Requirements

Potential claims or circumstances should be reported in accordance with the policy's notice and reporting provisions.

Who Should Consider Professional Liability?

If customers pay your business for expertise, advice, design, analysis or another professional service, an E&O exposure may exist.

Consultants

Business, management and other consultants can face allegations that recommendations or services caused a client financial loss.

IT & Technology Firms

Technology services can create errors, implementation, system failure, data and contractual exposures requiring specialized coverage.

Real Estate Professionals

Real estate service providers can face allegations involving disclosures, valuations, transactions, advice or other professional services.

Accountants & Bookkeepers

Financial and bookkeeping services can create claims alleging errors, missed obligations or inaccurate professional work.

Designers & Marketing Firms

Creative and marketing businesses can face professional-service, contractual and intellectual-property-related exposures.

Other Service Businesses

Many businesses that provide expertise rather than physical products can have professional liability exposures unique to their industry.

Why Businesses Work With Briteline

Professional liability is highly dependent on industry, operations and policy wording. Carrier selection matters.

Multiple Commercial Markets

Briteline can compare available professional liability markets rather than limiting your business to one carrier's appetite and policy form.

Service-Specific Review

We look at what your business actually does so the carrier is underwriting the professional services you truly provide.

Coordinate the Whole Program

Professional liability can be reviewed alongside general liability, cyber, property, workers compensation and commercial umbrella coverage.

Professional Liability FAQ

What is professional liability insurance?

Professional liability insurance, often called errors and omissions or E&O insurance, can help protect against certain claims alleging that professional services, advice, mistakes or omissions caused financial harm.

Is E&O the same as general liability?

No. General liability typically focuses on certain bodily injury, property damage and personal or advertising injury claims. Professional liability focuses on allegations arising from professional services and resulting financial loss.

Who needs professional liability insurance?

Businesses providing advice, consulting, technology, design, analysis or other professional services may have an E&O exposure. Client contracts may also require professional liability insurance.

What does claims-made mean?

Claims-made policies generally require the applicable claim to be made during an active policy period, subject to the policy's retroactive date, reporting requirements and other terms. Continuous coverage can therefore be particularly important.

What is a retroactive date?

A retroactive date is a date used in many claims-made policies to help determine how far back covered professional services can have occurred. Services performed before that date may not qualify for coverage.

Does professional liability cover intentional wrongdoing?

Professional liability policies contain exclusions and generally are not intended to insure deliberate dishonest or fraudulent conduct. Exact exclusions and how they apply depend on the policy.

Do I need both cyber and professional liability?

Potentially. The two coverages address different exposures, although technology businesses can have overlap between professional-services and cyber risks. Both policy forms should be reviewed based on the business's operations.

Can a client require me to carry E&O insurance?

Yes. Contracts frequently require businesses to maintain specified professional liability limits and provide evidence of coverage before work begins.

Your Expertise Is Valuable. Protect the Risk That Comes With It.

Tell Briteline what professional services your business provides, who your clients are and what contracts require. We'll compare available professional liability markets and help evaluate the coverage that fits your operation.