Professional Liability (E&O)
Definition. Professional Liability — also called Errors & Omissions (E&O) — covers claims of professional mistakes, bad advice, missed deadlines, or faulty service. Different from General Liability (which covers physical claims).
Also known as: E&O, Errors & Omissions, Professional Indemnity, Malpractice
Pro Liab fills the coverage gap left by GL. Most policies are Claims-Made (not Occurrence), which creates retroactive-date + tail-coverage complexity when switching carriers or retiring. Standard limits $1M-$5M per claim.
Example
An accountant misses a tax filing deadline causing a client $25,000 IRS penalty. GL would NOT cover this; Pro Liab pays the settlement and defense.
Sources cited
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📘 Educational content only.
Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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