Clients expect competent advice and execution. Errors and omissions insurance provides the financial backing when a professional’s work is alleged to have fallen short and caused economic harm. It is the formal policy that embodies errors and omissions coverage.

The insuring agreement typically covers sums the insured becomes legally obligated to pay because of wrongful acts in the performance of professional services, plus defense costs. Definitions of professional services, wrongful act, and claim determine the scope. Exclusions for intentional misconduct, bodily injury, and contractual liability are common.

Premiums reflect the profession, revenue, claims history, and limit requested. Risk-management practices such as engagement letters, peer review, and complaint handling can improve terms. Because allegations can arise years after the work is performed, continuous coverage and proper tail protection at retirement or sale of the firm are important considerations.

• Policy covering professional negligence claims
• Responds to economic loss from wrongful acts
• Claims-made form requires attention to timing
• Terms influenced by risk-management practices