What is Professional Liability Insurance and What Does It Cover?

Professional liability insurance, also called errors and omissions (E&O) coverage, helps cover professionals for claims of negligence, mistakes or failure to perform their professional duties. Unlike general liability insurance, which covers bodily injury or property damage, professional liability focuses on financial losses that result from services or advice.

What Does Professional Liability Insurance Cover?

This type of insurance can help cover:

• Claims of negligence: If a client alleges that your advice or service caused them financial harm, professional liability insurance may help with legal costs and settlements.
• Errors or omissions: Mistakes happen, and even a small oversight can lead to a costly claim. E&O coverage helps cover your business if you’re accused of making an error or leaving out important information.
• Defense costs: Legal fees can add up quickly, even if a claim is unfounded. Professional liability insurance can help cover the cost of defending your business in court.
• Breach of contract: If a client claims you didn’t deliver services as promised, this coverage may help with related legal expenses.

Who Needs Professional Liability Insurance in California?

Many professionals in California can benefit from this coverage, including:

• Consultants and advisors
• Accountants and financial professionals
• Real estate agents and brokers
• Architects, engineers and designers
• Health care providers and therapists

How Our Team Can Help

At Eaton & Eaton Insurance, we work closely with California professionals to assess their risks and find appropriate professional liability insurance for their needs. Don’t let a single mistake or misunderstanding put your business at risk. Contact our team today to learn more about professional liability insurance and how we can help you stay protected.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.