Professional liability insurance (sometimes called E&O or errors & omissions) is used by consultants and white collar professionals like lawyers, architects, engineers, physicians, and insurance brokers to protect against an actual or alleged failure to provide your professional services.

White collar professionals face all kinds of liability. Professionals are people who have additional training and/or expertise in a specific area and your clients rely on you for advice or services. That said, everyone makes mistakes eventually which can cause severe financial loss or even bodily injury to your clients resulting in a costly lawsuit for damages. A professional liability policy is required because a commercial general liability (CGL) policy does not cover claims arising out of business or professional practices.

Most commonly, claims made against white collar professionals by their clients involve allegations of negligence, malpractice, or misrepresentations.