Professional Liability policies protect your business from claims arising out of professional negligence. Generally, these policies cover economic losses or damages to a 3rd party, as opposed to bodily injury and property damage covered in a General Liability policy. There are many different professional liability policies available depending on the type of business that you’re in. Three of the most common are:

Employment Practices Liability (EPLI)

Employment Practices Liability, or EPLI, provides coverage including defense costs for your business in the event an employee brings suit for an employment-related practice, such as: discrimination, wrongful termination, harassment, or failure to promote.

Directors & Officers (D&O)

Directors & Officers Liability, or D&O, provides coverage to the directors & officers of an organization for claims regarding negligence, misleading statements, or misrepresentation. Most General Liability policies will cover a director or officer if there is bodily injury or property damage, but excludes acts that don’t cause any bodily injury or property damage.

Errors & Omissions (E&O)

Errors & Omissions Insurance (E&O) is needed by any company that provides a professional service. 

It helps protect your business from claims of negligence, errors in services given, omissions, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

It provides coverage for attorney fees, court costs (example: paying for an expert witness), administrative costs (example: payments to court reporters and other court administration fees), and settlements and judgements entered against you.

There are many other types of Professional Liability policies. Some other policy types are: Media Liability, Fiduciary Liability, Medical Malpractice, and other E&O policies specific to a profession – like Architects & Engineer Liability.