Professional Liability Insurance (E&O)
When your business provides professional advice or services, a general liability policy won't protect you from claims that your work caused a client financial harm. That's what professional liability, also called Errors & Omissions (E&O), is designed to cover.
When a mistake in your work becomes a financial claim against you
General liability covers physical harm: someone gets hurt, property gets damaged. Professional liability covers financial harm caused by your advice, your work product, or an omission in your professional services. These are two separate exposures requiring two separate policies.
The client's general liability policy won't respond: there was no physical damage. The IT consultant's professional liability (E&O) policy would respond to defend the claim and potentially cover a settlement.
Who needs professional liability coverage
Any business that provides professional advice, recommendations, or services for a fee should carry E&O coverage. Common examples in the Texas market:
Protect the value of your professional work
One client dispute can threaten everything you've built. Professional liability coverage gives you the defense and financial protection to keep your business moving forward.
Coverage descriptions on this page are general in nature and for educational purposes only. Actual policy language governs all claims. All coverages are subject to policy terms and conditions. Tail coverage and retroactive date decisions carry significant implications; consult a licensed insurance professional before making changes to an active professional liability policy.