Professional Liability Insurance

Who needs professional liability

Any service-based business where the deliverable is advice, design, judgment, or professional execution. The claim that triggers PL is typically not a slip-and-fall or a damaged piece of equipment — it is an allegation that your work fell short of the professional standard and caused the client a financial loss. Industries we cover:

• Consultants — management, marketing, strategy, HR, operations
• Insurance agents and brokers
• IT services — MSPs, software developers, dev shops, integrators
• Accountants, bookkeepers, and tax preparers
• Real estate professionals
• Architects, engineers, and designers
• Financial advisors and paralegals

What professional liability covers

• Defense costs — legal fees and litigation expenses, even if the claim is groundless.
• Settlements and judgments — up to the policy limit.
• Negligence claims — when your professional work fell short of standard.
• Errors and omissions — mistakes, oversights, missing details in deliverables.
• Breach of duty — failure to meet a contractual professional obligation.
• Personal injury (limited) — libel, slander, copyright infringement related to your professional work.

Claims-made vs occurrence — and why claims-made is the norm here

Most coverage in commercial insurance is occurrence-based — it responds when something happens during the policy period. Professional liability flips that: it responds when a claim is first reported during the policy period for an incident that occurred on or after the retroactive date. The reasons:

• Service errors are often discovered years after the work was done
• Tail liability would be impossible to price on an occurrence basis for service businesses
• Carriers can manage exposure by tracking active policies and retroactive dates

Claims-made is fine — but you must understand it before switching carriers, letting a policy lapse, or retiring. We help structure tail (extended reporting period) coverage when needed.

Retroactive dates and prior acts

The retroactive date is the earliest date a claim can trigger your policy. When switching carriers, the new policy should honor your prior retroactive date so historical work is still covered. Failing to do so creates a gap: a claim reported under the new policy for old work would be excluded because the incident predates the new retroactive date. We confirm prior-acts coverage during every quote.

Common claim examples

• Consultant's strategy recommendation produced a financial loss for the client
• Insurance agent failed to bind requested coverage; loss occurred during the gap
• IT integrator's implementation caused data loss and downtime
• Accountant missed a tax filing deadline; client owed penalties
• Designer's spec error required project rework at the client's expense
• Real estate agent failed to disclose a known defect; buyer alleges damages

What PL does NOT cover

• Bodily injury and property damage to third parties — that is general liability
• Employee injury — workers compensation
• Vehicle accidents — commercial auto
• Damage to your office or equipment — commercial property
• Intentional or fraudulent acts
• Claims arising before the retroactive date

Frequently asked questions