Professional Liability Insurance
Also called Errors & Omissions (E&O) Insurance. Protection when your expertise is questioned.
Professional liability insurance protects your business when a client claims your work, advice, or services caused them financial harm. Unlike general liability (which covers physical injuries), professional liability covers the mistakes, oversights, and alleged negligence that can arise from providing professional services.
Get a Professional Liability Quote
Tell us about your profession and we'll find competitive E&O options
What Professional Liability Covers
Negligence
Claims that you failed to use reasonable care in providing your professional services, resulting in financial harm to your client. This is the most common type of professional liability claim.
Errors & Mistakes
Claims arising from mistakes in your work—whether it's an accountant's calculation error, a consultant's flawed recommendation, or an architect's design flaw that causes problems.
Omissions
Claims that you failed to do something you should have done, such as missing a deadline, forgetting to file paperwork, or failing to disclose important information.
Failure to Perform
Claims that you didn't deliver the services you promised, didn't complete work on time, or the results didn't meet the standard your client expected.
Misrepresentation
Claims that you gave false or misleading information about your services, qualifications, or the expected outcomes of your work.
Legal Defense Costs
Attorney fees, court costs, expert witnesses, and settlements—even for claims that have no merit. Defense costs can easily exceed $50,000 even for frivolous lawsuits.
Who Needs Professional Liability?
Any business that provides advice, services, or specialized expertise. If clients rely on your knowledge and judgment, you're exposed to professional liability claims.
Consultants
Strategic advice that affects client business decisions and outcomes
Accountants & CPAs
Tax preparation, audits, and financial advice with significant consequences
IT Professionals
System implementations, data management, and technology recommendations
Real Estate Agents
Property valuations, disclosure requirements, and transaction guidance
Architects & Engineers
Design errors, specification mistakes, and project oversight
Insurance Agents
Coverage recommendations and policy advice that affects client protection
Financial Advisors
Investment recommendations and retirement planning guidance
Lawyers
Legal advice, court filings, and representation (called malpractice insurance)
Marketing Agencies
Campaign strategy, advertising claims, and ROI promises
Home Inspectors
Property condition assessments and defect identification
Contract Requirements: Many clients—especially larger companies and government agencies—require proof of professional liability insurance before they'll sign a contract. Having adequate E&O coverage opens doors to better opportunities.
Real Claims Examples
See how professional liability responds in common scenarios:
Consultant's Bad Advice
Scenario: A management consultant recommends a restructuring strategy that results in significant revenue loss for the client company.
Coverage: Professional liability covers your legal defense ($75,000) and the settlement ($200,000) when the client sues for the financial damage caused by your recommendation.
Accountant's Error
Scenario: A CPA makes an error on a corporate tax return, resulting in $45,000 in IRS penalties and interest for the client.
Coverage: Professional liability pays for your defense and the client's claim for reimbursement of the penalties, plus any additional damages they claim.
IT Implementation Failure
Scenario: An IT consultant's software implementation causes data loss and three weeks of system downtime for a client business.
Coverage: Professional liability covers the client's claim for lost revenue, data recovery costs, and any contractual penalties they incurred—potentially $500,000 or more.
Real Estate Agent Oversight
Scenario: A real estate agent fails to disclose known foundation issues, and the buyer discovers major structural problems after closing.
Coverage: Professional liability defends you against the lawsuit and covers the settlement for repair costs that can easily exceed $100,000.
What Affects Your Premium?
Professional liability premiums vary significantly based on your risk profile:
Profession Type
Higher-risk professions (medical, legal, financial) pay more than lower-risk fields (marketing, consulting)
Annual Revenue
More revenue typically means larger projects and higher potential damages if something goes wrong
Coverage Limits
$1M/$2M limits are common, but some professions need $5M or more; higher limits cost more
Deductible Amount
Higher deductibles ($5,000-$25,000) lower premiums but increase your out-of-pocket costs
Claims History
Previous claims or lawsuits significantly increase premiums and may limit coverage options
Years in Business
Newer businesses may pay more; established track records can lower rates
Typical Range: Low-risk consultants might pay $500-$1,500/year for basic coverage. Higher-risk professions like accountants, architects, or IT consultants typically pay $2,000-$10,000+ annually. Your specific rate depends on your profession, revenue, and coverage needs.
Get Your Professional Liability Quote
Protect your expertise with the right E&O coverage. We'll help you find a policy that fits your profession and budget.
Looking for a different location?
We also serve other areas in West Virginia
Jon Parrack Insurance
Serving Point Pleasant, Mason County (WV) & Southeast Ohio
Point Pleasant, WV