Professional liability insurance, commonly referred to as errors and omissions (E&O) coverage and sometimes known as professional indemnity insurance, is liability insurance designed specifically to help protect professionals who offer advice or services.

It is a specialty insurance coverage, and an important one at that as it helps protect service-providing and professional advice providing individuals from having to bear the full brunt of the costs to defend against a negligence claim (and damages award) made by a client.

Who Needs Professional Liability Insurance?

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This type of coverage isn’t something many people, even those who need it most, always know much about. In some cases, clients will request that a business have professional liability coverage before entering into a contract with them. That doesn’t mean these are the only professionals who need this type of coverage.

In fact, there is a long list of professionals who should give serious consideration to this investment for the peace of mind it provides and, especially, for the benefits it provides. Think about it, people often sue even when the other party has done nothing wrong. The costs of defending yourself, your business, and your reputation alone are substantial and that’s even if you’re ultimately found innocent.

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Some of the professions who need errors and omissions or personal indemnity insurance include: