Overview
General liability covers physical injury and property damage. It doesn't cover financial loss from professional mistakes. Professional liability, also called errors and omissions (E&O), fills that gap.
If a client claims you gave bad advice, missed a deadline, made an error or failed to deliver what you promised, E&O pays for your defense and covered settlements.
What It Covers
Negligence & Errors
Mistakes or oversights in your professional services.
Missed Deadlines & Failure to Perform
Claims you didn't deliver as promised.
Defense Costs
Legal defense even if the claim is groundless.
Misrepresentation
Claims that your advice or representations were inaccurate.
Who Needs It
- Freight brokers and logistics consultants
- Consultants and advisors
- Accountants and bookkeepers
- IT and marketing firms
- Real estate and property managers
What Affects Your Price
- Profession
- Revenue
- Contract sizes
- Claims history
- Limits and retention
Roy's tip: Most E&O policies are claims-made: the policy in force when the claim is reported responds. Avoid gaps in coverage when switching carriers.
Frequently Asked Questions
Do freight brokers need E&O?
Freight brokers are required to maintain a $75,000 surety bond or trust fund (BMC-84/85), but that isn't insurance for the broker. Contingent cargo, contingent auto liability and E&O protect the brokerage itself.