Liability insurance that helps protect professional advice
Professional liability policies, also known as Errors and Omissions (or E&O) insurance, generally provide coverage for actual or alleged errors, omissions, negligence, breach of duty, misleading statements, and similar claims resulting from the performance—or non-performance—of professional services. Most policies cover both the defense costs (attorney fees, court costs, etc.) and settlements or judgements. Intentional wrongdoing is typically not covered.
If you have a “claims-made policy” or “prior acts coverage” with a retroactive date, coverage applies to claims arising from incidents which occurred prior to the effective date of your policy, as long as the claims are reported while your policy is in effect. If you have an “occurrence policy” or “extended reporting period”, coverage will apply to claims which are reported after the policy ends, as long as the incident occurred while the policy was in effect.
Nearly all professional liability policies vary in terms of their coverage options. Here are some questions you should consider when evaluating professional liability policies: