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Protection for the professional services and advice your business provides.
D&E Insurance Group helps Arizona professionals and service businesses explore Errors & Omissions coverage for claims involving mistakes, negligence and professional services.
When clients rely on your expertise, advice or professional services, even an alleged mistake can lead to a costly claim.
Professional liability insurance, often called Errors & Omissions or E&O insurance, can help protect your business against certain claims involving negligence, mistakes, omissions or failure to properly perform professional services.
These exposures are different from the bodily injury and property damage claims typically associated with general liability insurance.
D&E Insurance Group helps Arizona professionals and service businesses review their exposures and explore professional liability coverage based on the services they provide.
Professional liability insurance can help protect your business from certain claims arising from the professional services, advice or expertise you provide.
Mistakes & Omissions
Coverage may help with certain claims alleging that an error, omission or failure in your professional services caused a client financial harm.
Negligence Claims
Professional liability can help respond to certain allegations that your business failed to provide services with the expected level of professional care.
Defense Costs
Depending on the policy and claim, coverage may help with certain legal defense costs associated with a covered professional liability claim.
Professional liability policies can vary by profession and insurance carrier. Coverage terms, limits, deductibles, exclusions and how defense costs are handled should be reviewed carefully.
Businesses that provide professional advice, expertise or specialized services can face claims arising from the work they perform.
Professional Services
Consultants
Accountants & bookkeepers
Insurance professionals
Real estate professionals
Property managers
Other professional offices
Design & Business Services
Marketing professionals
Technology consultants
Business consultants
Designers
Staffing companies
Other service businesses
Specialized Businesses
Contractors providing design services
Home inspectors
Associations & management firms
Training professionals
Administrative services
Other specialized professionals
Professional liability coverage is often tailored to a specific profession. The services your business provides, contracts you sign and potential financial impact of an alleged mistake can all affect the coverage you may need.
Both coverages can be important, but they are designed to address different types of business risks.
Professional Liability
Professional liability insurance can help with certain claims involving mistakes, negligence, omissions or failure to properly perform professional services.
These claims often involve allegations that a client suffered financial harm because of the professional services or advice provided.
General Liability
General liability insurance is generally designed to address certain claims involving third-party bodily injury, property damage and personal or advertising injury.
It typically does not replace professional liability coverage for claims arising from professional advice or services.
Many professional and service businesses may need both coverages because a single business can have both general liability and professional liability exposures.
Many professional liability policies are written on a claims-made basis, making the timing of a claim especially important.
Claims-Made Coverage
With a claims-made policy, coverage generally depends on when the claim is first made and reported, along with the terms and reporting requirements of the policy.
This makes maintaining continuous coverage particularly important for many professional businesses.
Retroactive Date
A claims-made policy may include a retroactive date. Generally, covered professional services must occur on or after that date for a related claim to potentially qualify for coverage.
When changing insurance carriers, preserving an existing retroactive date can be an important consideration.
Because claims-made policies can have specific reporting requirements, retroactive dates and other conditions, businesses should review these provisions carefully before changing or canceling professional liability coverage.
Professional liability addresses important service-related exposures, but it doesn’t replace the other insurance your business may need.
Bodily Injury & Property Damage
Many claims involving third-party bodily injury or property damage are generally addressed through general liability rather than professional liability.
Cyber Incidents
Data breaches, ransomware and other technology-related events may require specialized cyber insurance rather than professional liability coverage alone.
Employee Work Injuries
Work-related employee injuries and illnesses are generally addressed through workers’ compensation rather than professional liability insurance.
Professional liability policies also contain exclusions and limitations that can vary by profession and insurance carrier. Coverage should be reviewed carefully based on the services your business provides.
Common questions Arizona professionals and service businesses ask about professional liability and Errors & Omissions insurance.
Is professional liability the same as Errors & Omissions insurance?
The terms Professional Liability and Errors & Omissions, or E&O, are often used to describe similar types of coverage. The terminology and specific coverage can vary depending on the profession and insurance policy.
Who needs professional liability insurance?
Businesses that provide professional advice, expertise or specialized services may have a professional liability exposure. This can include consultants, accountants, property managers, technology professionals and many other service businesses.
Does general liability cover professional mistakes?
General liability insurance typically is not designed to replace professional liability coverage for claims alleging errors, omissions or negligence in professional services. Businesses may need both coverages depending on their operations.
What does claims-made mean?
Many professional liability policies are written on a claims-made basis. Coverage generally depends on when a claim is first made and reported, along with the policy’s retroactive date, reporting requirements and other terms.
What is a retroactive date?
A retroactive date can determine how far back covered professional services may have occurred for a later claim to potentially qualify for coverage. Maintaining an existing retroactive date can be an important consideration when changing insurance carriers.
How much does professional liability insurance cost?
Premiums can vary based on factors such as your profession, annual revenue, services provided, number of employees, coverage limits, claims history and other underwriting considerations.
Can D&E Insurance Group help review my E&O coverage?
Yes. D&E Insurance Group can help Arizona professionals and service businesses review their professional liability exposures and explore available coverage options.