Professional Liability


Errors and Omissions insurance, also sometimes referred to as professional liability, is insurance to protect you and your company in the event a client alleges they have suffered a financial loss as a result of an error or an omission committed by you in the delivery of your professional services. Professional liability coverage is separate from a General Liability (GL) policy which would cover you mainly for bodily injury or property damage liability.

Many firms that engage in delivering professional services obtain E&O insurance. These policies are typically issued in increments of $1,000,000 in coverage with deductibles from $1,000 per claim to $25,000. A number of insurance companies offer specialized professional liability policies developed for specific professions. It is worth your while to work with an agent or broker that has access to numerous insurance carriers so you can have some confidence that they can obtain the broadest possible coverage for you at a competitive rate.

It is very important for you to be aware that virtually all professional liability insurance policies are issued on a claims-made basis. That means that coverage is only provided for work that is done during the policy period and for claims that are filed (made) during the policy period. In effect, if an E&O insurance policy is canceled, and no provision is made for an extended reporting period, then all coverage stops and it is as if you never had a policy.

Finally, every insurance policy contains exclusions. It is important for you to analyze the professional risks that are most threatening to your business and seek insurance that covers those risks. Discuss your concerns with your agent. Surmount Insurance Services can help you identify a Professional Liability insurance policy that fits your needs.