Professional Liability (Errors & Omissions) Insurance

Professional liability insurance gives your business a critical safety net. General liability insurance only covers claims that stem from bodily injury, property damage, advertising injury, or personal injury. Errors and omissions (E&O) insurance (as professional liability insurance is commonly known) provides added protection against claims of misrepresentation, negligence, good faith violations, and error or failure to offer a service or render an opinion.

What Does Professional Liability Insurance Cover?

Errors and omissions insurance can be customized to meet the specific needs of your business. Professional liability insurance policies cover court costs, attorney fees, judgments, and settlements. Extended litigation can drain your company’s reserves, even when a claim is unwarranted. E&O insurance can help protect your company from financial disaster when another entity files a civil lawsuit against you for acts of negligence.

Professional liability insurance policies contain “shrinking limits,” which means that when defense costs are paid by the insurer, it reduces available policy limits. As defense costs can mount up with extended litigation, it may be necessary to purchase additional limits.

Who Needs Professional Liability Insurance?

Accountants, attorneys, real estate brokers, consultants, and others need E&O coverage. You should consider a professional liability insurance policy if your business:

• Provides professional services
• Gives advice to clients on a regular basis
• Needs professional liability coverage to complete a contract with a client

Cost of Professional Liability Insurance

There is no one-size-fits-all professional liability insurance policy. Premiums vary from company to company based on factors such as type of professional services provided, company revenue, number of employees providing professional services, and company loss history. An experienced agent at Wm. R Karschner & Sons in Wellsboro, Pennsylvania, can custom-tailor an errors and omissions policy to fit your needs.