Professional Liability including Directors & Officers, Errors & Omissions

Professional liability insurance (PLI) but more commonly known as Errors & Omissions (E&O) in the US, is a form of liability insurance that helps protect professional advice and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client and damages awarded in such a civil lawsuit.

Professional liability insurance may take on different forms and names depending on the profession. For example, in reference to medical professions it is called malpractice insurance, while errors and omissions (E&O) insurance is typically used by consultants, engineers, brokers, lawyers or any other business that provides professional advice or service.

Other professions that commonly purchase professional liability insurance include accounting and financial services, construction and maintenance, general contractors or subcontractors (many of whom are also surety bonded). Some charities and other nonprofits are also Professional Liability insured and/or carry Director’s and Officers’ (D&O) Coverage which is liability insurance payable to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers a loss as a result of legal action brought on for alleged wrongful acts in their capacity as directors and officers.