What is Professional Liability/Excess and Surplus?
Professional Liability insurance, also known as Errors and Omissions (E&O) insurance, helps protect businesses and professionals against claims of negligence, mistakes, or failure to provide a service as promised. Excess and Surplus (E&S) insurance refers to coverage for risks that standard insurers may not cover due to their complexity or higher risk nature. Together, these coverages offer protection for specialized or hard-to-place risks.
Who Needs It
Professional Liability/E&S insurance is essential for a wide range of businesses and individuals, including:
- Consultants and advisors
- Healthcare professionals
- Architects and engineers
- IT service providers
- Real estate professionals
- Businesses with unique or high-risk operations
If your business provides expert advice or services, or operates in a niche market that traditional insurers avoid, this type of coverage may be necessary.
What It Typically Covers
Professional Liability and E&S insurance generally help cover:
- Claims of negligence or professional mistakes
- Legal defense costs
- Alleged misrepresentation or inaccurate advice
- Failure to deliver a promised service
- Libel, slander, or other personal injury claims related to professional services
Common Exclusions and Limitations
While coverage can be broad, there are typical exclusions, such as:
- Intentional wrongdoing or fraud
- Bodily injury or property damage (usually covered under general liability)
- Employment-related claims (covered under EPLI)
- Claims arising from services rendered before the policy period (unless retroactive coverage applies)
Policies vary, so it’s important to review your coverage details carefully.
Factors That Influence Cost
The cost of Professional Liability/E&S insurance depends on several factors, including:
- Type of business or profession
- Annual revenue and size of operation
- Claims history
- Level of risk exposure
- Coverage limits and deductibles selected
Proof of Insurance and Compliance
Clients, vendors, or state agencies may require proof of Professional Liability or E&S coverage as part of doing business. Certificates of insurance serve as documentation that your business holds valid coverage. Requirements vary by industry and jurisdiction, so be sure to check what applies to your situation.
How to Get a Quote
Getting coverage tailored to your specific risks is easy. Start your quote today to explore your options and find the protection that fits your business.
Get a quote
Frequently Asked Questions
What’s the difference between Professional Liability and General Liability?
Professional Liability covers claims related to professional errors or services, while General Liability covers physical injuries or property damage.
Do freelancers or independent contractors need this coverage?
Yes, freelancers often need Professional Liability insurance, especially if they provide specialized advice or services to clients.
Is Excess and Surplus insurance only for high-risk businesses?
Not always. E&S policies are used when standard insurers cannot cover specific risks, which may include unique operations or specialized services.
Can I get Professional Liability coverage if I’ve had claims in the past?
Yes, but your claims history may impact your premium and the insurers willing to offer coverage.
Is this coverage required by law?
It’s not always legally required but may be mandated by clients, contracts, or industry standards.
Still have questions? Talk to a local insurance expert.