What does professional liability (E&O) cover?
- Claims of negligence, errors or omissions in the professional services you provide
- Claims of missed deadlines, mistakes in advice, or failure to deliver what was promised
- Legal defense costs, which can be significant even when a claim has no merit
- Settlements or judgments, up to your policy limits
Professional liability is different from general liability. General liability addresses bodily injury and property damage (like a customer slipping in your office); professional liability addresses financial harm from your professional work. Many businesses need both.
Many E&O policies are written on a claims-made basis, meaning the policy in force when the claim is made responds, subject to any retroactive date. Keeping continuous coverage matters. Coverage, exclusions and limits vary by carrier and profession, and all policies are subject to underwriting.
Who needs professional liability insurance?
- Real estate agents, brokers and property managers
- Consultants, business coaches and marketing agencies
- Accountants, bookkeepers and tax preparers
- IT professionals, software developers and web designers
- Architects, engineers and contractors who provide design work
- Beauty, nail and hair salons, spas and estheticians (often written as professional liability for services performed)
- Insurance agents, notaries and other licensed professionals
Some clients, contracts, licensing boards or franchisors require proof of professional liability coverage. Medical professionals typically need medical malpractice coverage, which is a specialized form of professional liability — ask us about options.
Why Florida professionals should review their coverage
Florida's fast-moving real estate market, growing small-business community and contract requirements from larger clients mean more professionals are being asked for a certificate of E&O coverage. We help you compare options, choose limits and deductibles that fit your contracts, and bundle with general liability or a business owner's policy where it makes sense.
Frequently asked questions
Is professional liability the same as errors and omissions (E&O)?
Yes. The terms are generally used interchangeably. Some professions use other names, such as malpractice insurance for medical professionals.
I already have general liability. Do I need E&O too?
Often, yes. General liability covers bodily injury and property damage claims; it typically does not cover claims that your professional advice or work caused a client a financial loss. That is what E&O is designed for.
What does claims-made mean?
A claims-made policy responds to claims first made while the policy is active, for work performed after the retroactive date. If you switch carriers or retire, ask us about maintaining your retroactive date or an extended reporting period (tail).
How much coverage do I need?
It depends on your profession, revenue, client contracts and risk. Many contracts specify a minimum limit. We review your situation and quote options so you can choose.
