Professional Liability Insurance: Frequently Asked Questions

By Lockton Professional

Insurance agent offering professional liability Insurance to commercial client.
(Photo by Getty Images)

Click here or call (248) 349-1122 to request a professional liability insurance quote


You may need Professional Liability coverage for the services you provide. From disgruntled clients to fiduciary liability or even typos, the right coverage makes all the difference.


What is the difference between Professional Liability and E&O?


Professional Liability Insurance and Errors and Omissions Liability Insurance are the same things. It may also be referred to as Malpractice Insurance.


What do Professional Liability Insurance Policies Cover?


Coverage depends on the type of policy you purchase and your profession. However, most policies include coverage for the cost of certain legal fees and judgments/settlements that you may face as a result of claims and litigation brought against you based on the advice or services you have provided.


What is not covered?

  • Criminal or intentional acts

  • Liability assumed under contract, with the exception of a written fiduciary contract

  • inside Trading

  • Alternative Investments, with exceptions for some asset classes and Foreign Securities

  • Products not authorized by your broker/dealer

  • Performance Guarantee

Who is covered under Professional Liability policies?


Coverage extends to anyone providing covered Professional Services on behalf of your business. This includes your clerical staff and other employees, independent contractors working for you when the policy starts, and your Chief Compliance Officer.


Does Professional Liability Coverage include Cyber Liability Coverage?


Not typically. You can purchase comprehensive cyber liability coverage separately to cover the exposures of registered advisors.


Are the services I’ve provided to clients before starting a policy covered?


Often, you can receive coverage for your prior acts by matching your current coverage. However, if you are insured solely through your Broker Dealer, your prior acts coverage could be limited. If you are aware of circumstances that could result in a claim, these should be reported to your current insurer prior to binding coverage.


Original article shared here:


Disclaimer: The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Please check with your local Independent Insurance Agent for details.


Other Industries and products we specialize in at Insurance Exchange:

Manufacturing Insurance

Preschool & Daycare Center insurance

Automotive Manufacturing Insurance

Tool & Die Shop Insurance

Staffing Agency Insurance

Food and Agriculture Insurance

Freshwater Technology and Services Insurance

Non-Profit Insurance

Cannabis Facility Insurance

Investment Properties – Commercial landlord Insurance

Habitational/Hospitality Insurance

Medical Malpractice Insurance

Elementary and Secondary (K-12) School Insurance

Home Insurance

Condo Insurance

Renters Insurance

Motorcycle Insurance

Watercraft Insurance

Umbrella Insurance

Small Business Insurance


Proudly offering professional liability insurance in Northville, Ann Arbor, Canton, Detroit, Dearborn Heights, Garden City, Farmington, Farmington Hills, Inkster, Livonia, Novi, South Lyon, Southfield, Redford, Wayne, Westland, Wixom, Ypsilanti, Pittsfield, & Scio Township, Michigan.

670 Griswold Street #100 Northville, MI 48167

                     (248) 349-1122

  • Grey LinkedIn Icon
  • Grey Google Places Icon

CA License: 0G47886

We use cookies to personalize and enhance your experience on our site.  Visit our Privacy Policy to learn more. By using our site, you agree to our use of cookies, as well as our Privacy Policy and Terms of use.

I'm a paragraph. Click here to add your own text and edit me. It's easy.

I'm a paragraph. Click here to add your own text and edit me. It's easy.