Professional Liability Insurance/
Errors and Omissions Insurance

Why having Professional Liability Insurance is Important

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, protects businesses that provide professional services or advice. It covers claims arising from mistakes, negligence, or failure to perform a service. This coverage is essential for consultants, accountants, architects, engineers, IT professionals, and similar service providers.

If a client suffers a financial loss because of a perceived error or omission on your part, they may file a lawsuit—even if you did nothing wrong. Professional Liability insurance helps cover legal defense costs, settlements, and judgments. Unlike General Liability insurance, which covers bodily injury and property damage, E&O focuses on financial damages resulting from professional services.

This coverage is often required by clients in service contracts, and policies are usually written on a claims-made basis, meaning the policy must be active both when the incident occurs and when the claim is filed. Keeping continuous coverage is critical to maintaining protection over time.