Professional Liability

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Also known as Errors & Omissions (E&O) insurance, professional liability protects businesses that provide professional services or advice. It covers legal defense costs and damages if a client claims your work caused them financial harm.

Coverage Types

Errors & Omissions
Legal Defense Costs
Settlements & Judgments
Regulatory Proceedings

What Professional Liability Insurance Covers

Professional liability insurance, commonly referred to as errors and omissions insurance, covers claims alleging that your professional services or advice caused a client financial harm. This includes claims of negligence, mistakes, missed deadlines, failure to deliver promised services, and misrepresentation. Even if a claim is completely without merit, the policy covers your legal defense costs, which can easily reach tens of thousands of dollars. Coverage typically extends to settlements and judgments up to your policy limits. Many policies also cover regulatory proceedings and disciplinary hearings related to your professional conduct. For service-based businesses in Auburn and throughout Central New York, this coverage provides a critical safety net that general liability insurance does not offer.

Industries That Need Professional Liability Coverage

Professional liability insurance is essential for a wide range of industries and occupations. Consultants, accountants, financial advisors, architects, engineers, IT professionals, real estate agents, and attorneys all face significant professional liability exposure. Healthcare practitioners, including therapists and counselors, need specialized malpractice coverage, which is a form of professional liability insurance. Even businesses that do not traditionally think of themselves as professional service providers may need this coverage. Marketing agencies, web designers, property managers, and staffing firms all deliver services where a client could claim that an error or omission led to financial loss. If your business provides advice, designs, plans, or any service that clients depend on for decisions, professional liability insurance should be part of your coverage portfolio.

Finding the Right Professional Liability Policy

Professional liability policies vary significantly from one carrier to the next. Policy language, exclusions, retroactive dates, and claim reporting requirements all differ, making it essential to work with an experienced agent who understands the nuances. Gillespie Insurance Agency has been helping Central New York professionals find the right errors and omissions coverage since 2006. We evaluate your specific practice area, the types of services you provide, your client contracts, and your risk tolerance to recommend policies that provide meaningful protection. As an independent agency, we have access to multiple carriers and specialty markets, ensuring you get the coverage terms and pricing that fit your professional needs. Call us at (315) 252-0694 to discuss your professional liability insurance options.

Common Professional Liability Questions

General liability insurance covers claims involving physical injury or property damage caused by your business operations. Professional liability insurance, also known as errors and omissions coverage, protects against claims of financial harm caused by your professional services, advice, or expertise. A general liability policy would not cover a client who claims your consulting advice cost them money, but a professional liability policy would.

Any business or individual that provides professional services, advice, or expertise should carry professional liability insurance. This includes consultants, accountants, architects, engineers, real estate agents, technology firms, attorneys, healthcare practitioners, and many other service-based professionals. If clients rely on your knowledge and judgment, you have professional liability exposure.

Yes. Professional liability insurance covers the cost of hiring an attorney and defending yourself against a claim, regardless of whether the claim has merit. Legal defense costs can be substantial even for frivolous lawsuits, so this coverage is essential. Some policies pay defense costs in addition to the policy limits, while others include defense costs within the limits.

Most professional liability policies are written on a claims-made basis, meaning the policy that is in force when the claim is filed is the one that responds, regardless of when the alleged error occurred. This is different from occurrence policies, which cover incidents that happen during the policy period even if the claim is filed later. Understanding this distinction is important when switching carriers or canceling coverage, and our team can explain how it affects your protection.

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