Professional Liability
Service Errors Coverage
Service errors coverage — the E&O component of professional liability — protects your business when mistakes, oversights, or failures in your delivered work lead to client losses. This includes errors made by employees acting on your behalf and work that didn't meet contractual specifications, even when no professional advice was involved.
Professional Liability
What You Need to Know About Service Errors Coverage
Errors and Omissions
E&O claims arise when work is done incorrectly or incompletely — a missed deadline causes a client to lose a contract, a software implementation contains a critical flaw, a design error causes a rework. Coverage applies to these claims even without a formal advisory relationship.
Vicarious Liability
You're responsible for errors made by your employees in the course of their work. If a junior employee makes a mistake on a client deliverable that causes harm, the claim comes to the business — and professional liability responds for covered errors.
Contractual Defense Obligations
Many professional service contracts include indemnification provisions that obligate you to defend clients against third-party claims arising from your work. Professional liability coverage addresses these defense obligations as part of the claim.