Professional liability insurance — also called errors and omissions insurance, or E&O — protects your business when a client claims your professional advice, services, or work caused them financial harm. Even if you did nothing wrong, defending against a professional negligence claim can cost tens of thousands of dollars in legal fees alone. Professional liability pays those defense costs and any resulting settlements or judgments.
General liability insurance does not cover professional mistakes. If a client sues because your design had a flaw, your financial advice led to a loss, or your consulting recommendations backfired, general liability typically excludes that claim. Professional liability closes that critical gap.
What Professional Liability Covers
- Errors and omissions — Claims that your professional work contained a mistake or critical omission that caused a client financial loss.
- Negligence — Allegations that you failed to meet the standard of care expected in your profession.
- Misrepresentation — Claims that you made inaccurate statements or promises that a client relied on to their detriment.
- Breach of duty — Situations where a client believes you failed to meet your contractual or fiduciary obligations.
- Legal defense costs — Attorney fees, court costs, and expert witness fees regardless of whether the claim has merit.
Who Needs Professional Liability Insurance?
Any business that provides professional advice or services for a fee should carry this coverage. Common examples in the Greeneville area include:
- Accountants, bookkeepers, and tax preparers
- Architects and engineers
- Consultants and business advisors
- IT professionals and software developers
- Real estate agents and property managers
- Marketing and advertising agencies
- Healthcare professionals (malpractice is a specialized form)
- Insurance agents (like us — we carry our own E&O coverage)
Claims-Made vs. Occurrence Policies
Most professional liability policies are written on a claims-made basis, meaning the policy in force when the claim is filed — not when the work was performed — pays the claim. This makes continuous coverage and proper retroactive dates critically important. We walk you through these details so there are no surprises at claim time.
Fill out the quote form or call our Greeneville office to discuss professional liability options for your specific profession.