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    What is professional liability insurance?

    Professional liability insurance is coverage that protects business professionals, such as attorneys, consultants and accountants, from claims of negligence or mistakes related to the services they provide. It’s often referred to as errors and omissions (E&O) insurance.

    Experts who give advice usually require professional liability coverage because their services can lead to mistakes that can cause financial or indirect loss for their clients. These types of incidents are typically excluded from other business insurance coverages.

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    What does professional liability insurance cover?

    Professional liability insurance covers claims of actual or alleged negligence that arise from providing professional services, like giving incorrect advice, an omission or failing to deliver a service. This coverage includes damages and defense costs up to your policy limits, regardless of whether a mistake was made.

    For example, a client claims an accountant filed their taxes incorrectly and caused them to lose a lot of money. The accountant’s professional liability insurance could help cover the legal and settlement costs.

    Many professional liability policies are written on a claims-made basis, which means that coverage is only afforded to claims filed during the policy period. A retroactive date may be added to cover incidents that occur before a policy’s coverage begins.

    Professional liability insurance coverage can protect against claims that arise from services provided in the past and for work performed anywhere in the world.

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    Who needs professional liability insurance?

    Any business that sells a professional service or gives advice should consider professional liability insurance to protect against lawsuits that arise from their mistakes.

    Some states legally require that certain professionals, such as lawyers, have it before they can do business. Clients might also require that a business carry a certain amount of professional liability as part of their business contracts.

    A variety of business professionals need professional liability insurance, including:

    What does professional liability insurance cost?

    In 2022, the national median cost of professional liability insurance through Progressive was $42 per month. The average monthly price was $57.

    Most customers pay closer to the median price because expensive outliers often drive up the average cost. While this information is helpful, it’s not customized to your unique situation.

    Learn which attributes of your business impact the cost of professional liability insurance, and discover ways to reduce your premium.

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    Common questions about professional liability insurance

    Is errors and omissions insurance the same as professional liability?

    When is professional liability insurance required?

    What’s the difference between professional liability and general liability coverages?

    Will professional liability cover me even if the lawsuit is baseless?

    Will professional liability, also known as E&O, cover me if I’m at fault?

    Does E&O insurance cover employees and subcontractors?

    Can Progressive help me get professional liability insurance in my state?

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    Start a quote and protect your small business with professional liability insurance today

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