Media liability
Errors and omissions for what you create, publish and advertise: defamation, privacy, copyright and trademark claims, with the cost of defending them.
Media liability- Home
- Professional liability
Professional liability (E&O)
Professional liability insurance for firms that give advice and deliver work
Coverage for claims that your service, advice or deliverable caused a client financial loss, including the cost of defending the claim.
Who needs it
Who this is for
Any business that could be sued over a mistake, a missed deadline or advice that turned out badly, even one that did everything right.
- Management, HR and technology consultants
- CPA firms, bookkeepers and tax practices
- Software developers, SaaS companies and IT service providers
- Architects, engineers and design professionals
- Advertising, marketing and communications firms
- Staffing firms, trainers and other professional services
What it covers
Coverage parts, and what to watch on each
Summaries only. The policy wording governs, and every carrier's form is different.
| Coverage | What it does | What to watch |
|---|---|---|
| Negligent acts, errors and omissions | Claims that your work or advice was wrong, late or incomplete and caused the client a financial loss. | The policy follows the services listed on the declarations. If you add a service line, tell us. |
| Defense costs | Attorney fees, expert witnesses and court costs, which often exceed the eventual settlement. | Inside or outside the limit matters. A $1M limit with defense inside can be spent before any settlement. |
| Disciplinary and regulatory proceedings | Many forms include a sublimit for responding to a licensing board or regulator. | Usually a small sublimit. Accountants and financial professionals should check it. |
| Subpoena response | Costs to respond when you are pulled into a client's lawsuit as a witness, not a defendant. | Not on every form. Firms that do attest work or hold records should ask for it. |
| Prior acts | Work done before the policy started, back to the retroactive date. | Switching carriers can reset the date. We carry the retroactive date forward when we move a policy. |
| Extended reporting period (tail) | The option to report claims after the policy ends, when you retire, sell or close. | Usually must be bought within 30 to 60 days of cancellation. Plan for it before the sale closes. |
The hard part
What it does not cover
- Bodily injury and property damage, which belong on general liability
- Intentional dishonesty, fraud and criminal acts
- Breach of contract disputes about fees, and promises of a particular result
- Claims from work before the retroactive date
- Employee claims such as discrimination or wrongful termination (employment practices liability)
Where a claim lands depends on the facts. Clients often carry both professional and general liability because a single incident can touch both.
How to get it
From first call to bound coverage
- 01Describe the servicesWhat you do, for whom, and how much of your revenue each service brings in.
- 02Share your contractsEngagement letters and limitation-of-liability clauses shape the risk and the price.
- 03Set limit and retro dateWe match the limit to your contracts and carry forward any retroactive date you already have.
- 04Review every yearNew services, new clients and new contracts change the exposure. The renewal review catches them.
Questions
Common questions
What is the difference between professional and general liability?
General liability is for physical harm: someone injured at your office, property you damage at a client's site. Professional liability is for financial harm from your work or advice. Most firms need both.
Our clients require a certificate with $1M in E&O. Is that typical?
Yes. $1M per claim and $2M aggregate is a common contract requirement. Larger clients and government contracts often ask for more. Send us the contract and we will match it.
What is a retroactive date?
The earliest date of work the policy will respond to. For a first-time buyer it is usually the policy start. If you have had continuous coverage, the retroactive date should carry forward when you renew or switch carriers.
What happens if I let the policy lapse?
Coverage for all prior work ends with it, because claims-made policies only respond to claims reported while the policy is in force. If you are closing or selling the business, buy an extended reporting period instead of simply cancelling.
Does it cover cyber incidents?
Not usually. A professional liability form may respond to a client's loss from your error, but breach response, ransomware and notification costs need a cyber policy.
Related
Often placed alongside
Cyber insurance
Breach response, business interruption, extortion and third-party liability for businesses that hold client data, run on cloud systems or get paid online.
Cyber insuranceGeneral liability
The foundation policy for any business with a premises, customers, contracts or a certificate request: third-party bodily injury, property damage, and personal and advertising injury.
General liabilityStart with the quote form, or a call.
The online application takes a few minutes for standard business lines. For production, media and professional liability, call or email and we will tell you what we need.