Coverage topic 05
Professional liability.
Your services deserve context.
Advice, professional work and client deliverables can create different questions from those addressed by general liability.
What is professional liability?
Professional liability, also called errors and omissions or E&O in many business contexts, can address specified claims alleging mistakes, omissions or negligence in professional services. The insured services and policy wording are central to the scope of coverage.
Different professions and business models may use different policy forms. A policy suitable for one type of service should not be assumed suitable for another.
Questions worth asking
- Which services and business entities are insured?
- How does the policy define a claim and professional services?
- Is the form claims-made or occurrence-based, and how do dates and reporting requirements work?
- How do defense costs affect the available limit?
- Do contractual commitments or work performed by others need review?
Prepare for the conversation
Describe the services you provide, your typical clients, how you document your work and any insurance clauses in client contracts. Note changes in your activities or an upcoming renewal.
Related topics
General liability · Cyber insurance · Professional services
More context. Better questions.
See the other coverage topics relevant to a service business.