Commercial Insurance
Professional Liability (E&O) Insurance
Your expertise is your livelihood. Professional liability insurance protects you when a client claims your professional services caused them financial harm. Whether you are a consultant, agent, designer, or any professional service provider, E&O coverage is essential protection.
What Is Covered
Coverage at a Glance
Negligence Claims
Covers allegations that your professional services failed to meet the expected standard of care, resulting in financial loss to a client.
Errors and Omissions
Covers mistakes, oversights, and failures to perform in your professional services. Even the most careful professionals make errors that can lead to client losses.
Legal Defense Costs
Pays for attorneys, court costs, and expert witnesses to defend you against professional liability claims. Defense costs alone can exceed $50,000 even for frivolous claims.
Missed Deadlines
Covers claims arising from missed filing deadlines, reporting deadlines, or other time sensitive obligations in your professional services.
Breach of Contract
Covers claims that you failed to fulfill your contractual obligations to a client, resulting in financial harm to the client.
Regulatory Defense
Covers the cost of defending yourself before regulatory boards and licensing agencies when a complaint is filed against your professional license.
California Context
Why This Matters in California
California's litigious environment means professional service providers face a high risk of malpractice and negligence claims. Even unfounded allegations can cost tens of thousands in legal defense.
General liability insurance does not cover professional errors. If you provide advice, design services, consulting, or any professional service, you need a separate professional liability policy.
Many California contracts, especially with government agencies and large corporations, require proof of professional liability insurance before you can bid on or accept a project.
California licensing boards for professions like real estate, insurance, accounting, and engineering can investigate complaints and revoke licenses. Professional liability coverage helps you navigate these proceedings.
The cost of a professional liability claim in California averages $50,000 to $150,000 when you include legal defense, even for claims that are ultimately dismissed. Without coverage, you pay this out of pocket.
Important
If you are switching professional liability carriers or retiring, ask about tail coverage. Without it, claims reported after your policy ends may not be covered, even if the alleged error happened while you were insured.
Common Questions
Frequently Asked Questions
Related Coverage Options
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