Professional liability insurance (PLI), also known as errors and omissions insurance (E&O) is a form of liability insurance that protects professionals and companies from the cost of defending a negligence claim made by a client, and paying financial damages if awarded in a civil lawsuit. The insurance covers the alleged failure on the part of the insured to perform up to the standards required by the industry. Professional liability insurance or E&O Insurance covers risks not covered in a general liability insurance policy, but does not cover the defense of criminal prosecution, which is a risk covered by another form of insurance. It should not be confused with Directors and Officers Liability Insurance (D&O).

In the medical professions, professional liability insurance is often called malpractice insurance. The term E&O insurance is commonly used when the insurance covers attorneys, accountants, real estate brokers and agents, mortgage brokers and agents, escrow agents, title insurance agents, notaries, insurance brokers and agents, appraisers, architects, engineers, and consultants.

Professional liability insurance policies are generally written based on a claims-made basis, meaning that the policy only covers claims made during the policy period. A typical policy will provide indemnity to the insured against losses arising from any claim or claims made during the policy period by reason of any covered error, omission or negligent act committed in the conduct of the insured's profession during the policy period. Claims which may relate to incidents occurring before the coverage was active are often not covered, although some policies may have a retroactive date, such that claims made during the policy period, but which relate to an incident after the retroactive date are covered. Malpractice policies vary greatly making it important to obtain good advice and to compare policies. Please contact us for a quote.

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