Professional Liability or Errors & Omission Insurance

Professional liability is coverage that protects an individual or business that gives ANY professional advice. The most common type of Professional liability coverage people are familiar with is Errors and Omissions (E&O) insurance, which captures human errors. Whereas a general liability policy covers damages against injuries, bodily harm, and property damage, professional liability insurance plans cover against the advice or guidance that has been given and, in turn, causes harm to an organization or person because of that advice. Depending on your operations and exposures, you may need a professional and general liability policy.

Who needs professional liability coverage?

A broad range of professions have professional liability exposure, and some may not be so obvious on the surface. Most people think of lawyers, doctors, and architects as the primary professional services who need a professional liability policy, but it is much broader than that. We ask for and receive professional advice from specialists in many fields. Here is a list of common business types that could use an E & O policy or a professional liability policy:

  • Insurance Agents
  • Real Estate Agents
  • Accountants
  • Educators
  • Trainers
  • Website Builders
  • Creative Media professionals
  • Notaries and Paralegals
  • IT and Technology Professionals
  • Doctors and Healthcare providers
  • Personal Trainers

Note: These are just a few examples. Hundreds of professions need to cover this exposure.

Whether the terminology is errors and omissions, medical malpractice, or professional liability, licensed and unlicensed professionals giving advice should seek out coverage for their respective exposure and see if they have a vulnerability that needs to be covered.

What do I need to know to determine my professional liability coverage cost?

  • Type of industry
  • Annual number of patients/customers seen
  • Annual revenues
  • Use of loss control prevention tools to minimize overall risk
  • Total claims paid in the past 5 years
  • Total years in operation
  • Number of professional staff members
  • Number of projects per year

Providing specific costs for professional policies is difficult as no two look the same. We can, however, discuss some of the factors that go into pricing this type of policy.