If your business offers advice, consulting, or specialized services, you need more than just general liability insurance. That’s where professional liability insurance, also known as errors and omissions (E&O) insurance, comes in.

What Does It Cover?
Professional liability insurance protects your business from claims of:

Negligence (failing to deliver services as promised)

Misrepresentation (giving incorrect advice)

Inaccurate documentation

Breach of contract

For example, if a financial advisor gives incorrect investment advice that results in a client’s loss, the client can sue even if the advice was given with good intentions.

Who Needs It?
This coverage is especially vital for:

Consultants

Accountants

Architects and engineers

Real estate agents

IT professionals

Medical providers (usually under malpractice insurance)

Real-World Example
Imagine you’re a software consultant who advises a client on a new system. If that system fails, causing downtime or data loss, your client may sue for lost revenue—even if you followed best practices. That’s where E&O coverage protects your business.

Cost and Coverage
The average cost ranges from $500 to $2,500 per year depending on your industry and risk level. Coverage typically starts at $1 million per claim.

Top Insurance Providers
Hiscox: Tailored E&O policies for various industries.

The Hartford: Great for professional services.

Chubb: Offers extensive and customizable options.

What’s Not Covered?
Bodily injury and property damage

Intentional wrongdoing or fraud

Employment-related issues (use EPLI for that)

Conclusion
If your business revolves around your expertise, professional liability insurance is a critical investment. It ensures that one mistake or accusation won’t ruin your hard-earned career.