Consultants and Advisors
Management, marketing and business consultants whose clients act on their recommendations.
Professional Liability Insurance in Texas
Errors and omissions coverage for firms that sell advice, design or expertise. It answers claims that your work caused a client a financial loss.
Who It's For
Accountants and Bookkeepers
Tax preparers, bookkeepers, CPA firms and outsourced CFO services.
Real Estate Professionals
Brokerages, sales agents, property managers and appraisers.
Design and Technology Firms
Architects, engineers, designers, software developers and IT service providers.
What It Covers
Errors and Omissions
Claims that a mistake, a missed deadline or bad advice cost your client money.
Negligence and Misrepresentation
Allegations that you did not meet the standard of care for your profession or described your services inaccurately.
Legal Defense
Defense costs for covered claims. On many professional policies, defense is paid inside the limit and reduces what is left for a settlement.
Prior Acts
Claims from work done before the policy started, back to the retroactive date shown on the policy.
Extended Reporting Period
Tail coverage that lets you report claims after the policy ends, such as when you retire, sell or close the firm.
Licensing Board Complaints
Some policies include a smaller limit for defending a complaint to a state licensing board.
Texas and San Antonio Details
When a firm carries professional liability, it is usually because a client contract, a lender or a franchise or brokerage agreement asked for it. Read the insurance section first. Contracts commonly ask for $1,000,000 per claim, notice before cancellation and coverage kept in force for a set number of years after the work ends.
Most professional liability policies are claims made. The policy that pays is the one in force when the claim is made and reported, as long as the work happened after the retroactive date. Keep the same retroactive date when you renew or move to another insurance company, and buy an extended reporting period, called tail coverage, when you retire, sell the practice or close. A gap can leave years of earlier work uninsured.
Contracts also shape your exposure. Vendor agreements from San Antonio school districts, hospitals, public agencies and larger companies commonly include indemnity clauses and limitation of liability terms next to the insurance section. A professional liability policy generally covers your own negligence, not every promise you make in a contract, so we read the indemnity language along with the insurance requirements before we quote.
Common Questions
What Is the Difference Between Professional Liability and General Liability?
General liability covers injury and property damage your business causes. Professional liability covers financial loss from mistakes in your advice or services, which general liability generally excludes.
Is Errors and Omissions the Same as Professional Liability?
Yes. Errors and omissions, or E&O, is the name many industries use for professional liability. Medical and legal fields often call it malpractice coverage.
What Is a Retroactive Date?
The earliest date of work the policy will cover. Claims from work done before that date are not covered, so keep your retroactive date when you renew or change insurance companies.
Do I Need Tail Coverage When I Close My Business?
It is worth a close look. A claims made policy stops taking new claims when it ends, and a tail, or extended reporting period, lets you report claims for earlier work for a set period.
How Much Professional Liability Do I Need?
Start with your contracts. Many client agreements ask for $1,000,000 per claim, and firms with larger projects or clients often carry more.
Related Coverage
Ready to Talk Coverage?
Send a request or call us to get started.