Professional Liability Insurance (Errors & Omissions)
A professional mistake doesn’t have to be dramatic to be expensive. A missed deadline, a misunderstood requirement, a documentation gap, or a client who later says “that’s not what you told me” can trigger legal costs, settlement pressure, and months of distraction. Professional liability (E&O) is meant to convert that kind of accusation—whether fair or unfair—into a manageable process with defense and financial protection. This page is here to make the risk concrete, explain how E&O behaves when a claim happens, and help you get a quote fast.
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Get options built around real-world claim scenarios (client disputes, alleged negligence, missed deadlines, scope misunderstandings) and choose coverage that won’t surprise you later.
What actually disrupts your business after an E&O allegation
E&O claims aren’t “paperwork problems.” They’re legal costs, time loss, reputation risk, and the need to respond quickly with clear documentation. These are the scenarios that most often turn into expensive, drawn-out disruption.
Alleged negligence or bad advice
A client claims your work caused financial harm—even if you disagree. Defense costs can show up before fault is ever proven.
Scope and deliverable disputes
“That wasn’t included” becomes “you failed to do what we expected.” Ambiguity in scope can turn into an allegation of failure.
Missed deadlines and downstream losses
Late delivery can trigger contract penalties, lost revenue claims, and “you caused our project to fail” narratives.
Documentation gaps and “who said what”
Claims often hinge on emails, notes, and versions. Weak documentation makes it harder to defend the work you actually did.
Claims-made coverage: the part that surprises people (and why it matters)
E&O is commonly written on a claims-made basis. That matters because timing is part of the coverage mechanism. The goal here is not to push anyone toward a specific policy form. It’s to explain how claims-made works so you’re not surprised later.
What “claims-made” means (in plain terms)
Claims-made coverage generally responds when a claim is made (and reported) during the active policy period—subject to the retroactive date and policy conditions. That’s different from coverage that is triggered only by when the work happened.
This is why continuity matters: if you let a claims-made policy lapse and later a claim appears, you can create a gap. This is general information; policy forms and rules vary by carrier and state.
Retroactive dates, reporting, and defense costs
Many E&O policies use a retroactive date that sets how far back covered professional services can go. If your work predates the retro date, a later allegation may not be covered—even if the claim is made today.
Another practical issue is defense costs: legal defense may erode the limit (or sit outside it) depending on the policy. When comparing quotes, you want to know how defense is handled, because that changes what the “limit” buys you in a long dispute.
If you want help comparing quotes so you’re not accidentally comparing different triggers, retro dates, or defense structures, call 1-833-339-1186.
If you’d rather start online, you can check your quote in minutes.
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Common shopper assumptions (translated into what matters in the policy)
People shop in shorthand. That’s normal. The goal is to make sure the shorthand lines up with how E&O actually responds when a dispute happens.
“I’m covered for mistakes.”
Often it’s allegations of negligence, errors, or omissions—subject to exclusions, conditions, and how/when the claim is made and reported.
“My contract protects me.”
Contracts help, but they don’t stop lawsuits. Defense costs and dispute resolution are where E&O earns its keep.
“General liability covers this.”
General liability is usually about bodily injury/property damage. E&O is about professional services and financial harm allegations.
Common misunderstandings (and the practical clarification)
E&O is where assumptions become expensive because claims can be driven by allegations and legal process—not by a clear “accident” moment. The main risk is thinking “I do good work” is the same as “I’m protected if someone claims I didn’t.”
“I’ve never had a complaint, so I don’t need E&O.”
Past calm can feel like proof of future safety.
E&O is about the next allegation, not the last decade.
One unhappy client, one project dispute, or one misunderstanding can trigger defense costs and time loss even if you ultimately did nothing wrong.
“My LLC protects me, so I’m fine.”
Entity structure feels like a complete shield.
LLCs reduce some risk, but they don’t pay attorneys.
Even when liability is limited, defense and settlement pressure can hit the business hard. E&O is about funding the response.
“If I stop working, I’m done worrying.”
People assume risk ends when services end.
Claims can arrive later—timing is part of coverage.
Because E&O is commonly claims-made, continuity, retro dates, and reporting rules can matter even after the work is finished.
“A small client can’t really hurt me.”
Lower revenue clients feel lower risk.
Severity can be legal-cost-driven, not client-size-driven.
Even modest disputes can generate meaningful defense costs. The cost to respond can exceed the cost of the work.
“My policy limit is huge, so I’m safe.”
Big numbers feel like complete protection.
Limits, defense structure, and exclusions decide what you actually bought.
Two policies with the same limit can behave very differently depending on defense treatment, definitions, and what’s excluded.
Want to sanity-check what an E&O quote is actually saying in plain terms?
Call 1-833-339-1186.
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Frequently Asked Questions
These are general answers to common questions. Details vary by state and carrier.
If you want to talk with a licensed agent about options and pricing, call 1-833-339-1186.
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What’s the difference between professional liability and general liability?▼
What does “claims-made” mean?▼
What is a retroactive date?▼
Does E&O cover intentional wrongdoing or fraud?▼
Are defense costs inside the limit or outside the limit?▼
Does E&O cover contract disputes?▼
What limit should I choose?▼
Do I need E&O if I’m a solo contractor?▼
How does E&O pricing usually work?▼
How quickly can I get proof of insurance?▼
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Related options people ask about
These come up because professional disputes rarely stay “small”—they turn into legal process, time loss, and pressure to resolve quickly.
General liability
Often paired with E&O because it addresses bodily injury/property damage exposures that E&O isn’t designed for.
Higher limits and defense structure
People ask how far the policy really goes once attorneys are involved—and whether defense costs erode the limit.
Prior acts / continuity planning
Especially for claims-made E&O, people ask how to avoid gaps when switching carriers or pausing business operations.
Additional resources
Want to go deeper? These guides expand on claims mechanics, quote comparison, and common scenarios that trigger disputes.
E&O vs general liability
What each policy is designed to do—and where overlap assumptions cause gaps.
Claims-made, explained
Retroactive dates, reporting rules, continuity, and why timing is part of coverage.
Defense costs and limits
How legal expenses can change what the “policy limit” effectively buys you.
Common E&O claim triggers
Scope disputes, deadlines, miscommunication, documentation gaps, and allegation patterns.