Professional Liability Insurance

Protect your business from claims of negligence, errors, and omissions with comprehensive E&O coverage

What is Errors & Omissions Insurance?

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, protects your business against claims of inadequate work, negligent actions, or failure to perform professional duties.

Whether you’re a consultant, accountant, architect, or any professional service provider, this coverage is essential to protect your business from costly lawsuits and claims that could threaten your financial stability.

Even if a claim is groundless, the legal costs to defend yourself can be substantial. Professional Liability Insurance covers both defense costs and any settlements or judgments against you.

Understanding Professional Liability Coverage

Professional Liability Insurance is designed to protect professionals who provide advice, services, or expertise to clients

Legal Defense

Covers attorney fees, court costs, and other legal expenses associated with defending against professional liability claims, even if the allegations are unfounded.

Settlements & Judgments

Pays for settlements or court-ordered judgments resulting from covered claims, protecting your business assets and financial stability from devastating losses.

Reputation Protection

Helps protect your professional reputation by providing resources to properly defend against claims and resolve disputes with clients professionally.

What Professional Liability Insurance Covers

Comprehensive protection against the most common professional liability claims

Professional Negligence

Claims that you failed to perform professional duties with reasonable care and skill, resulting in financial loss to your client.

Errors & Mistakes

Coverage for unintentional errors, mistakes, or inaccuracies in your professional work that cause harm to clients.

Missed Deadlines

Protection when failure to meet contractual deadlines or deliverables results in financial damages to your client.

Misrepresentation

Claims that you provided inaccurate information or advice that led to client losses or damages.

Failure to Deliver

Coverage when you fail to deliver promised services or results as outlined in your professional agreement.

Breach of Duty

Protection against claims that you violated your professional duty of care or fiduciary responsibility to clients.

Important Note

Professional Liability Insurance typically covers claims made during the policy period for incidents that occurred while the policy was active. It's important to maintain continuous coverage to ensure protection for past work.

Who Needs Professional Liability Insurance?

Any business that provides professional services, advice, or expertise should have this essential coverage

Accountants & CPAs

Tax preparation errors, audit mistakes, or financial advice that leads to client losses.

Architects & Engineers

Design flaws, structural issues, or project delays that result in financial damages.

Consultants

Business advice, strategic recommendations, or implementation guidance that doesn't meet expectations.

Attorneys

Legal malpractice, missed filing deadlines, or inadequate representation claims.

IT Professionals

Software bugs, system failures, data breaches, or technology implementation issues.

Healthcare Providers

Medical malpractice, misdiagnosis, treatment errors, or patient care issues.

Real Estate Agents

Property misrepresentation, disclosure failures, or transaction errors.

Marketing Agencies

Campaign failures, copyright infringement, or unmet performance promises.

Financial Advisors

Investment advice, portfolio management errors, or unsuitable recommendations.

Don't See Your Industry Listed?

Professional Liability Insurance is valuable for any business that provides services, advice, or expertise to clients. If your work involves professional judgment or specialized knowledge, you likely need this coverage.

Frequently Asked Questions

Common questions about Professional Liability Insurance
What is the difference between Professional Liability and General Liability Insurance?
General Liability Insurance covers bodily injury and property damage claims, while Professional Liability Insurance covers claims related to professional services, advice, and expertise. For example, if a client slips and falls in your office, that’s covered by General Liability. If a client sues you for negligent advice that caused financial loss, that’s covered by Professional Liability.

Coverage amounts typically range from $1 million to $5 million per claim, with aggregate limits of $2 million to $10 million. The right amount depends on your industry, client contracts, revenue, and risk exposure. Many clients require specific coverage limits in their contracts. We can help you determine the appropriate coverage level for your business.

No, Professional Liability Insurance does not cover intentional acts, fraud, criminal activities, or dishonest conduct. It only covers unintentional errors, omissions, and negligence in the performance of professional services. Coverage is designed to protect against honest mistakes, not deliberate wrongdoing.
Professional Liability Insurance is typically written on a “claims-made” basis, meaning the policy must be in effect both when the incident occurred and when the claim is filed. This differs from “occurrence” policies that cover incidents that happened during the policy period, regardless of when the claim is made. It’s important to maintain continuous coverage and consider “tail coverage” if you switch carriers or retire.

Premiums vary widely based on your profession, revenue, claims history, coverage limits, and deductible. For example, consultants might pay $500-$3,000 annually, while architects or healthcare providers might pay $5,000-$15,000 or more. We work with multiple carriers to find you competitive rates tailored to your specific profession and risk profile.

Yes, it’s possible to obtain coverage even with prior claims, though it may affect your premium and policy terms. Some carriers specialize in higher-risk professions or businesses with claims history. We’ll work with you to find appropriate coverage options and help you implement risk management strategies to reduce future claims.
Yes, absolutely. Even with well-drafted contracts and liability waivers, you can still be sued for professional negligence. Contracts may limit your liability, but they don’t eliminate it. Many clients actually require proof of Professional Liability Insurance before signing contracts. The insurance also covers your legal defense costs, which can be substantial even if you win the case.

Tail coverage extends the time period during which you can report claims after your policy expires or is cancelled. Since Professional Liability is claims-made coverage, you need tail coverage to protect against claims filed after your policy ends for work performed while the policy was active. This is especially important when retiring, selling your business, or switching insurance carriers.

Why Choose Densmore Insurance?

Trusted expertise in Professional Liability Insurance for Iowa businesses

Industry Expertise

Our agents specialize in Professional Liability Insurance and understand the unique risks facing different professions and industries.

Multiple Carrier Options

We work with top-rated insurance carriers to find you the best coverage at competitive rates tailored to your profession.

Comprehensive Coverage

We ensure your policy includes all necessary coverages and endorsements specific to your professional services and client requirements.

Personalized Service

From initial quote to claims support, we provide dedicated service and guidance throughout your policy lifecycle.

Claims Assistance

If you face a claim, we're here to guide you through the process and ensure you get the support you need from your carrier.

Risk Management

We provide guidance on best practices and risk management strategies to help you minimize your exposure to professional liability claims.

Ready to Protect Your Professional Practice?

Get a customized Professional Liability Insurance quote today

Get Your Professional Liability Quote

Protect your professional practice with comprehensive E&O coverage. Fill out the form and we’ll provide you with a customized quote tailored to your profession and risk profile.

Phone

(515) 967-3390

Email

info@densmoreis.com

Address

85 Plaine Street SE, Suite G, Bondurant, Iowa 50035

Professional Liability Insurance

Visit Our Office

Stop by our location to speak with one of our experienced insurance agents in person.

Densmore Insurance Strategies, Inc.

Bondurant Office (Main)

Address

85 Paine St SE ste g, Bondurant, IA 50035

Phone

(515) 967-3390

Office Hours

Mon - Fri: 8:30 AM - 5:00 PM Sat - Sun: Closed