Does Professional Liability Cover Mistakes?
It may cover a client’s claim that a covered professional mistake caused loss, subject to the service definition, exclusions, and policy limits.
A mistake is not automatically insured just because it happened at work. E&O usually addresses a third-party claim arising from an error or omission in covered professional services; Texas DOI uses a client losing money because of a mistake as an example. The policy may exclude particular services, known circumstances, contractual guarantees, or types of damages, and it may require a claim to be first made and reported within set dates. Some technology businesses use a technology E&O form or endorsement with scheduled products and services. Read the application description, retroactive date, claim reporting condition, deductible or retention, and limit structure against the work you actually sell.
Keep examples of your work and a current service list ready when reviewing a quote. If you recently added a service, ask whether the insurer must approve or schedule it before work begins.
Related Coverage
Sources
- FAQ: Professional liability insurance. Texas Department of Insurance; What’s professional liability coverage?; What types of damages…; What’s general liability insurance?; Do I need professional liability… if I have general liability…?; Is professional liability insurance required?; Can a client require…?; What’s the difference between occurrence policies and claims-made policies. Accessed 2026-09-25.
- Professional liability insurance. Insurance Information Institute; Opening paragraphs (professional services/advice and E&O name); Claims not covered by general liability; What types of businesses need professional liability insurance?; What’s covered… and what’s not (claims-made versus occurrence, defense and judgments, non-financial/intentional limits, BOP/in-home exclusion). Accessed 2026-09-25.
- Technology Errors and Omissions Insurance. The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.
