What Is Professional Liability Insurance?
July 10, 2026
What professional liability insurance covers, how E&O and professional indemnity insurance differ from general liability, who needs it, and what it costs.
Read guideProfessional Liability Insurance
Protect your firm when a client alleges that your advice, work, or failure to act caused a financial loss. We match policy language to the services you provide.
We shop the market for you, no broker fees
Eight relevant markets are shown for comparison. Availability depends on the risk and location, and a logo does not imply a direct appointment.
Hiscox
Professional services
Chubb
Errors and omissions
Travelers
Management and professional liability
The Hartford
Small business professional liability
Markel
Specialty professional liability
Great American
Professional liability programs
Philadelphia Insurance Companies
Professional liability
Kinsale
Excess and surplus professional liability
For firms whose clients rely on their expertise
- Consultants
- Technology firms
- Real estate professionals
- Design and creative firms
What changes your premium
These details help insurers assess your business and price the coverage. Terms and available options vary by insurer.
- The professional services you actually perform
- Annual revenue, and the size of your largest engagement
- How many licensed or billable people you have
- The limit and the retention you select
- Your retroactive date, and how far back it reaches
- Contract terms you routinely sign, including hold harmless language
- Prior claims and circumstances you have had to report
How it works
10 minute form
A few questions about your business or home.
We shop the market
We compare carriers and read the forms line by line.
Quote and bind
We pick the best policy and get you covered.
What this policy can cover
Negligent acts, errors, and omissions
Claims that your work or advice caused a client financial loss.
A bookkeeper misses a filing deadline and the client is assessed penalties and interest well into five figures. Nobody was hurt and nothing was damaged, so the general liability policy never engages. This is the policy that does.
Defense costs
The cost of defending a claim, even one without merit.
Negligent service
Claims that negligent performance of your services caused a client loss. Pure contract and fee disputes are usually excluded.
Covered professional services
The specific services described in your policy schedule.
Why do I need this if I already carry liability cover?
Because general liability answers bodily injury and property damage, and nothing else. A missed deadline, a design that failed, advice that cost a client money: nobody was hurt and nothing was damaged, so that policy never engages. This is the one that does.
How your limits and deductibles get set
Start with your contract requirements and potential losses. Then compare the cost of higher limits with what you could afford to pay yourself.
- 01
Start with the contract
Check the insurance limits and endorsements required by your lease, client agreements or project contract.
- 02
Then size the exposure
Consider property values, the work you do, possible injury claims and legal defense costs.
- 03
Then price the step up
Where available, compare more than one limit and deductible. A lower premium may leave you paying more after a loss.
- 04
Then review it at renewal
Review changes in revenue, payroll, property values and operations before renewing your coverage.
Frequently asked questions
What is professional liability insurance?
Also called errors and omissions or E&O, it covers claims that your professional advice or services were negligent and caused a client financial harm.
Who needs E&O insurance?
Consultants, real estate professionals, technology firms, accountants, and other advisors, especially when a client contract requires it.
Is it the same as general liability?
No. General liability covers physical injury and property damage. Professional liability covers financial loss from your work or advice.
What is claims-made coverage?
Most E&O policies are claims-made, meaning the policy in force when a claim is filed responds, subject to your retroactive date. Letting coverage lapse can create gaps.
How much does professional liability cost?
Cost reflects your profession, revenue, services, limits, and claims history. We match the policy language to what you actually do.
Does professional liability cover a client who slips in my office?
No. A physical injury on your premises is general liability. Professional liability answers financial harm caused by your work.
Does it cover a data breach?
Only partly, and often not at all. Breach response, notification, ransom and network interruption belong on a cyber policy. Some E&O forms endorse a small amount of it on, which is rarely enough on its own.
Does it cover a claim from an employee?
No. Discrimination, harassment and wrongful termination claims from your own staff are employment practices liability.
What is a retroactive date and why does it decide whether I am covered?
Most professional liability is written on a claims-made basis, which means the policy that responds is the one in force when the claim is MADE, not when the work was done, and only if the work happened after the retroactive date. Let a policy lapse and that date usually resets, which quietly strips cover from every year of work behind you. Keeping the date intact when we move a carrier is a large part of the job.
Protect the work your clients hire you to do
Tell us about your services, clients, and contracts. We will compare professional liability forms that fit.