Professional Liability Insurance (E&O)

Professional liability insurance, sometimes referred to as errors and omissions (E&O) insurance, protects against potential negligence claims made by their clients.


The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury, or advertising injury claim. Professional services are excluded. Common reasons alleged in making claims on these policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.


Professional liability insurance policies are generally set up based on a claims-made basis, meaning that the policy only covers claims made during the policy period, claims which may relate to incidents occurring before the coverage was active may not be covered. These policies will have a retroactive date which provides coverage for claims made during the policy period but which relate to an incident after the retroactive date (where the retroactive date is earlier than the inception date of the policy). It is important to continue your coverage, because cancelling the policy, will in effect, make it as if you never had coverage for any incidents.


Please call American Insurance Agency today for your Professional Liability Insurance needs. Please call us or click for an insurance coverage review.

Did you know? You can get coverage even if you have experienced losses