If your business provides advice, expertise, or professional services — whether you’re a consultant, accountant, therapist, IT provider, or real estate agent — you face unique risks. Even the most experienced professionals can make mistakes, and one error can lead to a costly lawsuit. That’s where Professional Liability Insurance (also known as Errors & Omissions or E&O insurance) comes in. reputation and finances.
What Is Professional Liability Insurance?
Professional Liability Insurance protects businesses and professionals from claims of:
Negligence
Misrepresentation
Inaccurate advice
Failure to deliver services as promised
It steps in to cover legal fees, settlements, and court costs when a client claims your work caused them financial harm — even if the accusation is unfounded.
Who Needs It?
This insurance is essential for professionals in fields where expertise is the product. Examples include:
Consultants (business, HR, marketing, etc.)
Accountants and bookkeepers
Lawyers and paralegals
Real estate agents and brokers
Healthcare professionals
Therapists and counselors
IT and tech service providers
If your business offers advice or services that could financially impact a client, you likely need E&O coverage.
Real-World Example
Imagine you’re an IT consultant who advises a company on cybersecurity practices. A data breach occurs, and the client sues, claiming your guidance failed to prevent the incident. Even if you’re not at fault, legal defense alone could cost thousands.
Professional Liability Insurance would help cover those legal fees and potential damages.
What Does It Cover?
-Legal defense costs
– Settlements and judgments
– Alleged mistakes or professional negligence
– Miscommunication or documentation errors
– Missed deadlines or undelivered results
What It Doesn’t Cover
- Bodily injury or property damage (covered by General Liability Insurance)
- Employee injuries (covered by Workers’ Compensation)
- Intentional wrongdoing or fraud
- Claims made after the policy has expired (unless retroactive coverage is included)
Why It Matters
Even if you’re careful, you can’t control how clients interpret results or expectations. A single lawsuit could damage your reputation and drain your business finances.
Professional Liability Insurance:
Protects your personal and business assets
Offers peace of mind
Enhances credibility with clients and partners
Isn’t just for big firms
It’s critical for small businesses and solo professionals too. In today’s litigious world, protecting your business with the right policy isn’t optional — it’s smart business.
Need Help Choosing the Right Policy?
Let Best Choice Insurance guide you. Our team will compare providers and help you find affordable, tailored E&O coverage for your field. Contact us today for a free quote and expert support.