Professional Liability Insurance

Errors and Omissions Insurance (E & O Insurance)

What is Professional Liability Insurance?

Professional Liability (or E & O Insurance) protects individuals, professionals, firms and organizations when customers, clients or patients claim that failure to perform a job properly has injured them. The Professional Liability or E & O Insurance policy will pay judgments involving negligence, misrepresentation, violation of good faith or inaccurate advice for which the insured is legally liable, up to the policy limit. The policy will also pay for legal defense costs, whether or not there has been any wrongdoing.

How is Professional Liability Insurance different from General Liability Insurance?

Like General Liability Insurance, Professional Liability Insurance applies to a wide variety of businesses. However, Professional Liability Insurance offers certain protections against claims for damages against a business that are not included in the typical General Liability Insurance policy.

While General Liability Insurance focuses on covering bodily injury, property damage and personal injury claims, Professional Liability Insurance typically focuses on financial claims against professional firms or organizations that involve negligence, misrepresentation, violation of good faith and inaccurate advice.
More about General Liability Insurance

What types of businesses are protected by Professional Liability Insurance?

Any individual, firm, professional or organization that provides services such as giving advice, making recommendations or designing things commonly purchases Professional Liability Insurance. This includes professions such as accounting, engineering, financial services, brokerage firms, architecture, consulting services, equipment and software design, real estate and legal services. Some charities and other nonprofit organizations also carry Professional Liability Insurance.

A classic example of a business that benefits from Professional Liability Insurance would be accounting services. If an accountant fails to perform his job properly or commits “Errors and Omissions”, it may not cause physical or personal damage so the General Liability Insurance policy would not be triggered, however, it directly causes financial losses for which the accounting firm would likely be sued.

Are there specific types of Professional Liability Insurance?

Yes, there are specific types of Professional Liability Insurance that cover specific professions such as Contractors Liability Insurance for the construction industry and Medical Malpractice Insurance for the medical industry. While Professional Liability Insurance is not required by law for all businesses in Louisiana it is sometimes required under contract by other businesses that may use your business’s advice or service.


Free Evaluation and Quotation
Contact a Commercial Insurance Specialist from Alliance Insurance Agency for a free evaluation of the professional liability insurance of your business or organization.

Professional Liability Insurance is available through Alliance Insurance Agency for businesses, firms and professionals in Metairie, the Northshore and the entire New Orleans area.

The information presented on this website is for general reference purposes only and does not override or serve as an addendum to any insurance policy or contract. Always consult your insurance policy or your Alliance Insurance Agency Services, Inc representative for accurate information regarding your policy and coverage.