What is professional liability insurance (errors and omissions, E&O)?

Professional Liability — also called Errors and Omissions (E&O) or Malpractice depending on the profession — protects professionals against claims that negligent performance of their services caused financial loss to a client. Common professions covered: medical professionals (medical malpractice), lawyers (legal malpractice), accountants (accountants E&O), real estate agents, insurance producers, architects and engineers, IT consultants, financial advisors. CGL excludes professional services liability, so professionals need separate E&O coverage. Most professional liability policies are claims-made (triggered when the claim is filed, not when the negligent act occurred), with retroactive dates and tail coverage requirements. Premiums vary widely by profession — surgeons and OB/GYNs pay much more than primary care physicians; trial attorneys pay more than transactional attorneys. Coverage limits typically include defense costs (which can be enormous in professional liability claims).