What Is Professional Liability Insurance?

Professional liability insurance — also called Errors & Omissions (E&O) insurance — protects businesses that provide professional services or advice. It covers claims that your work was negligent, incomplete, or caused financial harm to a client.

Unlike general liability (which covers physical injuries), professional liability covers financial losses your client suffers due to your professional mistakes or failures.

Who Needs E&O Insurance?

Accountants & CPAs — tax filing errors, missed deadlines
IT consultants & MSPs — system failures, data loss
Lawyers — legal malpractice, missed statutes
Architects & engineers — design errors
Real estate agents — disclosure failures
Marketing agencies — campaign underperformance claims
Software developers — bugs causing client losses

What Does Professional Liability Cover?

Claims of negligence or failure to perform
Errors or omissions in deliverables
Missed deadlines or breach of contract
Unintentional misrepresentation
Defense costs (even for frivolous lawsuits)
Settlements and judgments

How Much Does E&O Insurance Cost?

Professional liability typically costs $500–$3,000 per year for small firms, varying by:

Industry and specialization
Revenue and client base
Coverage limits and deductible
Claims history

Insura compares quotes from specialized E&O carriers to ensure you get the right coverage at a competitive price.

Compare Top E&O Insurance Carriers

Professional liability (E&O) coverage and pricing depends on your profession. Compare the leading carriers:

Hartford vs Hiscox — Two top E&O carriers compared
Chubb vs Hiscox — Premium vs specialist on professional liability pricing
Markel vs Hiscox — Specialty vs professional liability specialist
Chubb vs CNA — Premium carriers for professional services
Progressive vs CNA — Mainstream vs professional specialty
Best E&O Insurance Carriers Compared — Hartford vs Hiscox vs CNA side by side

Average E&O cost: $50–$150/mo for most professionals. Get your custom quote →