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Professional Liability Insurance - E&O
Safeguard your expertise
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a contract between a professional and an insurance company designed to provide protection against claims arising from negligence, mistakes, errors, or omissions in the performance of professional services. This coverage is essential for professionals such as physicians, attorneys, architects, accountants, consultants, and other specialists who provide advice or professional expertise, as it helps cover legal defense expenses and the financial consequences of claims alleging that the professional failed to meet the expected standard of care.
Among the primary coverages available are:
Errors and Omissions Liability Coverage
- Covers legal expenses, settlements, and damages resulting from claims alleging that the insured professional made a mistake, committed negligence, or failed to properly perform professional services. This coverage protects against lawsuits claiming that professional services did not meet accepted industry standards, resulting in financial harm to a client.
Legal Defense and Court Costs
- Covers attorney fees, litigation expenses, investigation costs, expert witness fees, and other legal expenses associated with defending against claims of negligence, errors, omissions, or professional misconduct. This protection applies whether the claim is resolved in court or through alternative dispute resolution processes.
Settlement or Judgment Coverage
- Covers the cost of settlements, negotiated agreements, and court-awarded judgments that the insured professional may be legally obligated to pay as a result of a covered claim. This includes payments made to resolve disputes outside of court as well as those resulting from judicial decisions.
Regulatory Violations Coverage
- Covers certain legal expenses associated with defending against regulatory, licensing, or disciplinary actions arising from the performance of professional services. This coverage can be especially valuable for professionals who operate under the oversight of licensing boards, regulatory agencies, or professional governing bodies.
Subcontracted Services Coverage
- Provides protection when a claim arises from the work of subcontractors, independent contractors, or third-party service providers retained by the insured professional. This coverage is particularly important for professionals who rely on outside specialists to deliver certain services on behalf of their clients.
Errors of Advisors, Partners, or Employees Coverage
- Extends protection to claims arising from errors, omissions, or negligent acts committed by partners, advisors, associates, or employees whose actions may create liability exposure for the insured professional or firm. This coverage is especially beneficial for partnerships, professional practices, and organizations where multiple individuals contribute to client services.
Additional considerations:
Coverage Customization
- Professionals can tailor their policies to include specialized protections based on their industry, practice area, and unique risk exposures. For example, an attorney may require coverage focused on legal malpractice claims, while an architect may need protection against allegations involving design errors, project specifications, or professional recommendations.
*It is important to understand that policy terms, conditions, and coverage availability may vary from one insurance company to another. It is critical to carefully review each policy in order to fully understand the scope of coverage and any exclusions that may apply.
