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Professional liability (E&O)
For businesses that give advice or perform a service. General liability covers injury and damage; this covers being wrong.
Start the professional liability (e&o) application →- What it covers
- Claims that your advice, design, or service caused a financial loss
- Legal defense, which usually exceeds the settlement
- Missed deadlines and failure to deliver
- Regulatory complaints, on some forms
- What it doesn't cover
- Bodily injury and property damage — that's general liability
- Intentional wrongdoing and fraud
- Work performed before the retroactive date
- Typical limits
- $1M per claim is common. Real estate, IT, consulting, and design contracts often specify their own minimum.
- Worth knowing
- Most E&O is claims-made, which means the policy that pays is the one in force when the claim is filed, not when you did the work. If you switch carriers or retire without tail coverage, old work is left uncovered.
Common questions about professional liability (e&o)
What does professional liability (e&o) cover?
Claims that your advice, design, or service caused a financial loss. Legal defense, which usually exceeds the settlement. Missed deadlines and failure to deliver. Regulatory complaints, on some forms.
What does professional liability (e&o) not cover?
Bodily injury and property damage — that's general liability. Intentional wrongdoing and fraud. Work performed before the retroactive date.
What limits are typical?
$1M per claim is common. Real estate, IT, consulting, and design contracts often specify their own minimum.
What should I watch out for?
Most E&O is claims-made, which means the policy that pays is the one in force when the claim is filed, not when you did the work. If you switch carriers or retire without tail coverage, old work is left uncovered.