Professional Liability (E&O) Insurance in Los Angeles
Coverage when a client says your advice, design, or service cost them money. Errors and omissions insurance pays your defense and settlements, even when the claim has no merit.
Professional liability at a glance
- Also called
- Errors and omissions (E&O) insurance
- Who needs it
- Consultants, accountants, architects, engineers, real estate pros, and other advisors
- How it works
- Usually claims-made, with a retroactive date
- Often required by
- Client contracts and licensing boards
- Not covered
- Bodily injury and property damage, which fall under general liability
What professional liability covers
Professional liability responds when a client says your work caused them a financial loss. It covers the cost of defending you and any settlement or judgment.
Negligence and errors
Covers claims that a mistake or oversight in your work cost a client money.
Prior acts
Covers work done after your retroactive date, even if the claim comes later.
Legal defense
Pays attorneys and expert witnesses, even for claims without merit.
Settlements and judgments
Pays amounts you owe, up to your limit.
Contract compliance
Limits and wording that meet your client contract requirements.
Tail coverage
Extends reporting time after you retire, sell, or change carriers.
What affects professional liability rates
E&O pricing depends on your profession, revenue, the size of your clients, and the type of work you do. A firm handling large contracts or regulated work pays more than a solo consultant.
Claims history and contract terms matter too. Keeping your retroactive date when you switch carriers protects you from gaps in coverage for past work.
Ways to lower your premium
- Keep your retroactive date when changing carriers
- Use written contracts with clear scopes of work
- Document client communications and approvals
- Choose a deductible you could cover comfortably
- Review limits against your largest contracts
What moves your rate
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Profession
Some fields see far more claims than others.
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Revenue
Bigger firms carry more exposure.
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Client size
Large clients mean larger potential losses.
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Contract terms
Clear scopes and liability caps lower risk.
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Claims history
Past claims weigh heavily on pricing.
Professional liability questions
Don't see yours? Call (310) 751-5979 and ask.
What is the difference between general and professional liability?
General liability covers injuries and property damage. Professional liability covers financial losses caused by your advice or services.
What does claims-made mean?
A claims-made policy covers claims made while the policy is active, for work done after your retroactive date. Letting the policy lapse can leave past work uncovered.
Do I need E&O if I have never had a claim?
Claims can come even when you did nothing wrong, and defense alone can be expensive. Many client contracts also require it.
What is tail coverage?
An extended reporting period that lets you report claims after a policy ends, often used when you retire or close a business.
Find out what you should be paying
Tell us about your work and clients. We compare carriers and come back with real quotes, usually within 1-2 days.