5 Cities Insurance
Professional Liability & Errors & Omissions Insurance for California Businesses
Professional liability insurance — also called errors and omissions (E&O) — covers claims that a professional service you provided, or failed to provide, caused a client financial loss. General liability does not cover professional mistakes, so professional firms, consultants, and service providers typically carry this separately. This single page covers both terms because they describe the same core coverage; the /errors-and-omissions route redirects here so the site does not host two duplicate pages.
Coverage line pending confirmation
This coverage line is shown for educational purposes. The agency is confirming its availability and authority before it is published as an offered line. Request a quote or ask a question and we will confirm what applies to your business.
Who may need this coverage
- Consultants, accountants, architects, engineers, and design professionals
- Technology companies and software providers whose work affects clients' operations
- Insurance brokers, real estate professionals, and fiduciary service providers
- Any business whose advice or professional service could cause a client financial harm
What it may cover
Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:
- Damages from claims of negligent acts, errors, or omissions in professional services
- Defense costs for covered claims, even meritless ones
- Financial loss to a client caused by a professional mistake (not bodily injury)
Common exclusions and limitations
- Bodily injury or property damage — covered by general liability
- Fraud, dishonest, or criminal acts
- Known claims or prior acts before the policy's retroactive date
- Many contractual liabilities assumed beyond professional services
Relevant optional endorsements
- Prior acts / retroactive date coverage
- Extended reporting (tail) period
- Independent counsel when applicable
- Technology and media-specific E&O forms
Factors that may affect pricing
- Profession and scope of services
- Annual revenue and project size
- Limits and deductible selected
- Claims history and contract terms that shift risk
Information typically needed to request a quote
- Description of professional services offered
- Annual revenue and typical engagement size
- Prior acts / retroactive date needed
- Contractual requirements from clients
A realistic example
Situation: A consultant's report leads a client to make a costly decision, and the client alleges the advice was negligent.
How coverage may respond: Professional liability can cover the resulting claim and defense costs, subject to the policy terms and retroactive date.
FAQ
Professional Liability / E&O questions
Explore Professional Liability / E&O for your business
Request a quote with this coverage preselected, or ask a coverage question.