Professional Liability Insurance

Professional Liability Insurance is also referred to as Errors and Omissions Insurance (E&O insurance). E&O provides coverage for claims of monetary damages arising from alleged acts or omissions involving the rendering of professional services.

E&O insurance policies are commonly underwritten on a claims-made basis. That means that the policy covers claims against the insured that are made during the term of the policy.

E&O rates vary significantly from insurer to insurer and depend on a number of risk factors including:

• The type, size, and specialty of the operation.
• Whether the insured is a sole practitioner or part of a larger company
• Where your business is located
• The number and types of claims previously filed against the insured
• Annual Revenues

A common mistake made by firms is purchasing PLI based on price only. Make sure your agent understands that you want a policy that provides adequate coverage and represents the appropriate risk to the insurer. You can apply directly on our website to get a free quote.

Be careful, as some insurers sell "wrap-around" insurance policies that don't provide adequate coverage and often only provide a false sense of security.

It is important to note that there are different types of policies available and each covers different services provided. Specifically, any service or act related to the services you provide can be covered under an E&O policy. Below are some examples:

• Breach of Fiduciary Duty
• Errors and Omissions
• Malpractice
• Breach of Contract
• Unfair Trade Practices
• Negligent Referral

E&O insurance is typically purchased by professional firms on an annual basis. The policy must be renewed annually in order for it to remain active and cover claims that arise during the term of the coverage.

Professionals who can benefit from such a policy can be anyone from doctors and lawyers to solicitors and accountants.

The first step to getting a quote is applying for a quote with an experienced insurance company. You can apply directly on our website to get a free quote.

A company that specializes in E&O should have a broad knowledge of carriers and should be able to provide you with a number of quotes from different insurers that fit your firm's specific needs.

Though professional liability insurance policies cover quite a lot of things, like all policies, they don’t cover everything. Below are some things that most E&O policies don’t cover:

• Fines and court costs
• Uncollected fees
• Criminal acts
• Employment practices
• Errors in judgment
• Losses due to state or federal laws
• Intentional torts