Professional Liability Insurance

Professional liability insurance, or errors and omissions (E&O), covers claims that your professional services or advice caused a client financial harm — through a mistake, an oversight, a missed deadline, or work that didn’t meet expectations. It pays for legal defense and any resulting damages up to your limits.

It exists because general liability won’t respond to a purely financial loss caused by your work. At Rafail Insurance Agency we match the coverage to your specific services and explain the policy triggers so there are no surprises at claim time.

Any business paid for advice, expertise, or a professional deliverable should carry E&O — consultants, agencies, IT and software providers, real estate professionals, accountants, designers, engineers, and contractors with design responsibility. If a mistake in your work could cost a client money, you have the exposure.

Clients increasingly require it before they’ll sign, so it’s often a condition of doing business as well as a protection. We’ll tell you honestly whether your work creates E&O exposure and how much coverage fits.

General liability covers physical harm — bodily injury and property damage you cause to others. E&O covers financial harm from your professional work, such as faulty advice, an error, or a missed obligation. They respond to entirely different claims.

A client who slips in your office is a GL claim; a client who loses money because of your advice is an E&O claim. Many service businesses need both, and we’ll map which exposures apply to you.

A claims-made policy only covers a claim if your policy is active both when the work was performed (after your retroactive date) and when the claim is reported. This differs from an occurrence policy, which covers incidents during the policy period whenever the claim is later filed.

It matters because letting a claims-made policy lapse can wipe out coverage for all your past work. We track your retroactive date and arrange prior-acts or tail coverage so a switch or lapse doesn’t leave years of work unprotected.

The retroactive date is the earliest date of work that a claims-made policy will cover. Claims arising from services performed before that date are excluded, even if the claim is filed while the policy is active. Keeping the date as far back as possible preserves coverage for older work.

When you change carriers, protecting your retroactive date is essential, or you can create a gap. We handle this carefully during any switch so your prior work stays covered.

Cost depends on your profession, revenue, the services you provide, your claims history, and the limits you choose. Higher-risk advisory and design work costs more than lower-risk services, and required limits vary widely by client and contract.

Because we’re independent, we compare E&O programs across multiple A-rated carriers to fit your profession and budget. We’ll also flag where a contract dictates a specific limit so you carry exactly what you need.

Yes — E&O typically pays your legal defense costs even when a claim is groundless, because defending an allegation is expensive regardless of fault. Clients can and do sue over outcomes they’re unhappy with, even when the work was done properly.

That defense coverage is a major reason to carry E&O: a single unfounded claim can cost tens of thousands to defend. We make sure your policy’s defense terms are clear before you ever need them.

It’s free and carries no obligation. Share your services, revenue, and any current policy or contract requirements through our contact or appointment form, and we’ll review your limits, retroactive date, and policy form, then compare options across A-rated carriers.

If your coverage already fits, we’ll say so. If there’s a gap or a claims-made trap, we’ll show you exactly where — and the decision stays yours.