Business Insurance
Professional Liability / E&O Insurance in Arizona
What is professional liability / e&o?
Professional liability, also called errors and omissions (E&O), helps protect your business when a client claims your work, advice, or a missed deadline caused them financial harm. General liability does not cover those claims; it handles physical injury and property damage, not professional mistakes.
If clients pay you for expertise, judgment, or deliverables, this is the policy that responds when they say you got it wrong.
Who needs it
Professional liability fits anyone selling expertise:
- Consultants and advisors of all kinds
- Marketing agencies, designers, and software developers
- Real estate professionals, bookkeepers, and tax preparers
- Engineers, architects, and inspectors
- Anyone whose client contract requires E&O coverage
What it commonly covers
E&O policies commonly cover:
- Claims of negligence, errors, or omissions in your professional work
- Missed deadlines or failure to deliver as promised
- Legal defense costs, which are often the largest part of a claim
- Settlements and judgments up to the policy limit
- Claims arising from work done after the retroactive date, even if reported later (on claims-made forms)
What it may not cover
Typical exclusions include:
- Bodily injury and property damage, which belong to general liability
- Intentional wrongdoing and fraud
- Work performed before the policy's retroactive date
- Claims reported after the policy ends without tail coverage
- Some policies exclude specific services, so the application wording matters
Coverage varies by policy. The details above are general; your policy's terms control.
When it's commonly required
- Client contracts require E&O, often at $1 million, before work begins
- Professional licenses or designations require it in some fields
- Enterprise clients and government contracts almost always require it
How BrokerPro approaches it
E&O policies are claims-made, which means continuity matters. The retroactive date, the renewal, and what happens if you switch carriers all affect whether old work stays covered. We explain that machinery in plain terms so you do not accidentally create a gap.
We also match the policy to what you actually do. A policy written for 'consulting' may not respond to a software failure claim. The description of services on the application is worth getting right.
Common questions
What's the difference between general liability and professional liability?
General liability covers physical things: someone gets hurt, something gets damaged. Professional liability covers financial harm from your work or advice: a missed deadline, a calculation error, bad guidance. Many service businesses carry both because contracts ask for both.
What does claims-made mean?
The policy in force when the claim is made responds, not the one in force when the work happened. That makes continuous coverage and your retroactive date important. If you cancel and a claim arrives later, there is no coverage without tail coverage. We help clients manage this at every renewal.
My LLC is brand new. Can I get E&O before my first client?
Yes, and it is often the right time, since the policy will cover work going forward from your retroactive date. New consultancies and agencies are usually straightforward to quote.
Ready to look at professional liability / e&o options?
Send us the basics and we'll come back with practical choices and plain-English explanations. No runaround.