phrase · also: E&O, errors and omissions
professional liability
In plain English
Coverage for claims that you gave bad advice, made a mistake in your professional service, or failed to perform.
GL covers physical harm. Professional liability covers economic harm caused by your work. A consultant whose recommendations cost the client money, an architect whose plans were flawed, an IT shop that lost client data — all E&O claims.
What it covers
Economic damages arising from negligent acts, errors, or omissions in the rendering of professional services. Almost always claims-made.
What it does not cover
It does NOT cover bodily injury or tangible property damage from professional services — that's still GL. It also doesn't cover intentional acts or fraudulent conduct.
Where it trips people up
Carriers underwrite the specific service hard. A 'general E&O' may exclude tech/IT consulting; a tech E&O may exclude design defect. Match the form to the actual scope of services.
The technical version
Insurance protecting the insured against liability for economic loss to others arising from the insured's negligent acts, errors, or omissions in the performance of professional services.