The advice and the deliverable
Professional liability
Professional liability, also called errors and omissions insurance, can respond to covered allegations of mistakes in the services described by the policy. The services definition deserves as much attention as the limit.
What to examine
- Whether every service and discipline you provide appears in the insured services description.
- The retroactive date, prior-knowledge provisions and timing requirements for making and reporting a claim.
- Whether defense expenses reduce the available limit and how the retention applies.
- Exclusions for assumed contractual liability, express warranties and performance guarantees.
Contract checkpoint
Compare the agreement’s standard of care and indemnity wording with the policy. An obligation to pay under a contract can be broader than insured liability for professional negligence.