PROFESSIONAL LIABILITY INSURANCE

(Errors & Omissions Insurance & Medical Malpractice Insurance)

Protection for the advice, services, and expertise your business provides

Professional Liability insurance — often referred to as Errors & Omissions (E&O) insurance — is designed to protect businesses against claims alleging financial loss caused by mistakes, negligence, misrepresentation, or failure to perform professional services as intended.

Unlike General Liability, which focuses on physical injury or property damage, Professional Liability addresses claims tied to what you do, what you advise, or what you deliver.

What Professional Liability Insurance Covers

Professional Liability typically responds to claims alleging:

Errors or Mistakes
Unintentional errors in services, advice, or work performed.

Negligence
Failure to meet professional standards of care.

Misrepresentation
Claims that information provided was inaccurate or misleading.

Failure to Perform
Allegations that services were not delivered as promised or contractually agreed.

Legal Defense Costs
Attorney fees, court costs, and settlements associated with covered claims — often the most significant expense in professional disputes.

What It Does Not Cover

Professional Liability policies are specific in scope and commonly exclude:

• Bodily injury or property damage

• Intentional or fraudulent acts

• Employee injuries

• Cyber events or data breaches (unless endorsed)

• Contractual guarantees beyond professional duty

• Claims arising outside defined professional services

Coverage applies only to the professional services specifically described in the policy.

Who Needs Professional Liability Insurance?

Professional Liability is essential for businesses that provide specialized services, advice, or expertise, including:

• Consultants and advisors

• Insurance and financial professionals

• Real estate professionals

• Technology and software providers

• Marketing, design, and media firms

• Healthcare and allied professionals

• Engineers, architects, and inspectors

Many contracts, clients, and regulatory bodies require Professional Liability coverage as a condition of doing business.

How Coverage Is Structured

Professional Liability policies are typically written on a claims-made basis, meaning coverage applies only if:

• The claim is made during the active policy period, and

• The alleged act occurred after the policy’s retroactive date.

Key elements include:

• Per-claim and aggregate limits

• Deductibles or self-insured retentions

• Retroactive dates

• Policy exclusions and endorsements

Maintaining continuous coverage is critical to avoid gaps.

Real-World Claim Examples

• A consultant is sued for providing incorrect financial projections

• A technology firm is accused of delivering faulty software functionality

• A real estate professional is alleged to have failed to disclose material information

• A marketing agency faces claims of misrepresentation in advertising results

Even when claims lack merit, defense costs alone can be substantial.

Why Proper Placement Matters

Professional Liability coverage is highly dependent on:

• How services are defined in the policy

• Industry-specific exclusions

• Contractual obligations

• Jurisdictional legal standards

A poorly structured policy may leave critical services uninsured or create costly coverage disputes.

Our Approach

At Cory Washington & Co., we take a detail-driven approach to Professional Liability placement. We analyze your operations, contracts, and service scope to ensure coverage aligns with real-world exposure — not just surface-level descriptions.

Our focus is protecting your reputation, revenue, and long-term business viability.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.