Professional Liability (E&O) by Builders Choice Insurance Services .

Professional liability insurance only provides protection only as long as your policy is in force. This means that only the claims made and reported in the policy period will be covered. When you cancel your policy you may not have protection in place, even if a claim later arises from work completed during a period in which you had insurance. So it’s wise to keep coverage in place even after you have completed a project.

Where a typical general liability policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim, the most common claims that professional liability covers are negligence, misrepresentation, violation of good faith, and inaccurate advice. Even though professionals are expected to have a certain level of competence in their disciplines, if a professional makes a mistake on the job, an E&O policy can cover the cost of defending your company in a civil lawsuit even if the claims turn out to be groundless.