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Business Resilience · Authority Guide

Professional Liability (E&O) for Service Businesses

Errors & Omissions coverage protects professional service businesses from negligence claims. Required in most service industries.

In this guide

  1. 1 · Executive summary
  2. 2 · Key takeaways
  3. 3 · Key strategies
  4. 4 · Pro-tips checklist
  5. 5 · FAQ
  6. 6 · Related guides & tools

Executive summary

Errors & Omissions coverage protects professional service businesses from negligence claims. Required in most service industries.

  • Defends against negligence claims
  • Pays damages + defense costs
  • Claims-made vs occurrence form

Key takeaways

  • Defends against negligence claims
  • Pays damages + defense costs
  • Claims-made vs occurrence form
  • Tail coverage on cancellation

Key strategies

  1. Strategy 1

    Defends against negligence claims

  2. Strategy 2

    Pays damages + defense costs

  3. Strategy 3

    Claims-made vs occurrence form

  4. Strategy 4

    Tail coverage on cancellation

Pro-tips checklist

  • Buy tail coverage on retirement
  • Specify scope of services accurately

FAQ

What's the difference between claims-made and occurrence?

Occurrence covers claims tied to events during the policy. Claims-made covers claims reported during the policy. Tail coverage extends claims-made.