Term
Professional indemnity insurance (E&O / professional liability)
14 stories mention it
Professional indemnity insurance covers a business or individual against claims of financial loss caused by their professional advice, services or errors.
The policyholder is a firm or professional whose service, rather than a physical product, can cause a client financial harm through a mistake, an omission or negligent advice. A carrier prices and takes on that liability in exchange for premium, and reinsurers typically stand behind the carrier for larger claims. When a client alleges loss from bad advice or a botched service, the policy funds the legal defense and any settlement or judgment, up to the policy limit.
It exists because professional errors rarely show up immediately and often surface well after the work is done, which is why these policies are usually written on a claims-made basis tied to when the claim is reported rather than when the mistake happened. A common confusion is treating it as interchangeable with general liability, which covers bodily injury or property damage rather than financial loss from professional judgment. Coverage terms, exclusions and the scope of "professional services" vary widely by occupation, so wording is negotiated rather than standardized.
In insurance technology, this line shows up in embedded and point-of-sale products that let agencies, marketplaces or software platforms attach professional liability coverage to another purchase, and in underwriting tools that assess an applicant's claims history and scope of services to price the risk quickly for smaller firms that historically had trouble finding coverage at all.
Written by Insurtech Daily.
For the running coverage rather than the definition, see the Insurtech hub.
Professional indemnity insurance in the news
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Aurenity hires Brian Robb to lead professional liability expansion
Robb joins from Berkshire Hathaway Specialty Insurance.
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Aurenity enters cyber and tech E&O with former BHSI executive
Brian Robb brings two decades of cyber, tech E&O, and MPL underwriting experience from BHSI and CNA
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Beazley adds affirmative AI cover in cyber and tech E&O policies
Specialty insurer Beazley is now including affirmative artificial intelligence (AI) cover in its cyber and tech Errors and Omissions (E&O) policies. Affirmative AI cover indicates that an insurance policy states…
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Bloc Cyber launches as new cyber insurance and technology E&O brokerage
Bloc Cyber, a specialty cyber insurance brokerage, has officially launched as an independent, carrier-agnostic firm aiming to serve regulated industries nationwide. The firm, headquartered in The Woodlands, Texas…
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Bloc Cyber launches as new cyber insurance and technology E&O brokerage
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Bloc Cyber Launches Specialty Cyber Insurance and Technology E&O Brokerage for Regulated Industries
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Bloc Cyber Launches Specialty Cyber Insurance and Technology E&O Brokerage for Regulated Industries
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Bloc Cyber Launches Specialty Cyber Insurance and Technology E&O Brokerage for Regulated Industries
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Markets/Coverages: Insurtech Foxquilt Launches E&O Product
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Markets/Coverages: Insurtech Foxquilt Launches E&O Product
Small business focused insurtech Foxquilt said it has launched an admitted errors & omissions product with a rollout to 10 states starting in September. E&O is Foxquilt’s second admitted product in the U.S. along with…
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Foxquilt Expands U.S. Product Suite with Launch of Errors & Omissions (E&O) Insurance
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Markets/Coverages: Insurtech Foxquilt Launches E&O Product
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NAPA Expands E&O Insurance for High-Volume Agencies and Launches New IMO Coverage
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SME-focused insurtech Coterie adds Everspan paper to professional liability program