Your professional work · E&O, malpractice
Professional liability
Covers claims that your professional advice or service was wrong, late or negligent, and cost a client money. Also called errors and omissions (E&O) or, for doctors and lawyers, malpractice.
- Who it's for
- Consultants, designers, developers, accountants, agents, architects, and anyone paid for expertise.
- Is it required?
- Required for some licensed professions, and by many client contracts.
Covered and not covered
Usually covered
- Claims of negligence, mistakes or missed deadlines
- Claims that you failed to deliver what you promised
- Your legal defense, even if the claim is groundless
Usually not covered
- Bodily injury and property damage, which general liability covers
- Intentional wrongdoing and fraud
- Claims made after the policy ends, without tail coverage
- Refunds of your own fees, in many policies
Real-life examples
A bug in software you built causes a client's checkout to fail for three days.
Usually coveredThe client's lost sales claim is covered, including your defense.
You stopped your policy last year, and a client sues now over work from two years ago.
Usually not coveredThese are claims-made policies: the policy must be active when the claim arrives, unless you bought tail coverage.
Check your own policy
Find these on your policy or declarations page, or ask your agent:
- Retroactive date
- What services the policy describes: it should match what you actually do
- Whether defense costs reduce the limit
Not sure where to look? See how to read your policy.