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Business insurance guide

Professional Liability Insurance

Professional liability, often called errors and omissions coverage, addresses certain claims that a service, advice, or professional work caused financial harm. Policy wording and the timing of claims matter.

Reviewed July 20, 2026
01 · Work

Define every professional service

List advice, designs, recommendations, reports, software, data work, subcontracted services, and regulated activities.

  • Review claims-made dates, retroactive date, reporting rules, and tail options.
  • Compare defense costs inside or outside limits, consent-to-settle terms, and contractual-liability exclusions.
  • Align proposals, scopes, change control, records, and quality review with the coverage application.
02 · Change

Report new services before the claim

A new customer type, technology, jurisdiction, or deliverable can change the exposure. Review material changes with the insurer before relying on existing terms.

Primary source ledger

Verify before acting.

U.S. SBA — get business insuranceOfficial starting point for common small-business policy categories and buying steps.