Business Insurance
Professional Liability Insurance
Professional liability insurance, sometimes called E&O, protects consultants, attorneys, accountants, and other professionals from negligence claims tied to the services they provide.
Last reviewed: May 2026 · Editorial methodology
Definition
Professional liability insurance covers legal defense and damages when a client alleges your professional advice, service, or failure to perform caused them financial loss. It is distinct from general liability, which covers physical injury or property damage rather than economic harm from faulty professional work. Solo consultants and freelancers might pay $500–$2,000/year, while architects or engineers can pay $5,000–$20,000/year depending on project size and claims history. The policy is nearly always written on a claims-made basis, meaning coverage applies only if both the act and the claim occur while the policy is active — creating a critical need for tail coverage when switching insurers or retiring. Many states require certain professions, such as attorneys, CPAs, and real estate agents, to carry minimum professional liability limits as a condition of licensure. Failing to disclose known disputes or prior claims at policy inception can void coverage under the misrepresentation provisions.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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