Professional liability insurance for healthcare agencies and professionals
Professional liability, also called errors and omissions (E&O), pays for your defense and any settlement when a client says your work, advice or care fell short. It's the policy most likely to be tested in a service business.
What it covers
- Claims of negligence, errors or omissions in your professional services
- Allegations that your advice caused a client financial loss
- Missed deadlines or failure to deliver promised services
- In healthcare, claims that care was delivered improperly, such as a fall during a transfer
- Legal defense costs, even when a claim has no merit
Required for home care licensing
California requires home care organizations to carry general and professional liability of at least $1 million per occurrence and $3 million aggregate (Health and Safety Code section 1796.37). Illinois requires a Certificate of Insurance showing $1 million per occurrence and $3 million aggregate for home health, home nursing and home services agency licenses (77 Ill. Adm. Code 245.90).
Who we insure
- Home health, home care and hospice agencies
- Medical staffing agencies
- Consultants and IT service firms
- Accountants and bookkeepers
- Real estate, marketing and engineering professionals
Coverage by profession
Frequently asked questions
Is professional liability the same as general liability?
No. General liability covers bodily injury and property damage to others. Professional liability covers financial harm caused by mistakes in your professional services. Most service businesses need both.
Is errors and omissions insurance the same thing?
Yes. E&O is another name for professional liability. In healthcare it's often called malpractice insurance.
What limits should I carry?
$1 million per claim and $3 million aggregate is a common choice, and it's the minimum California and Illinois set for home care agency licensing. Our estimator prices liability at those limits with a $2,500 deductible.
What does claims-made mean?
Most professional liability policies cover claims made while the policy is active, for work after a retroactive date. Keep your retroactive date when you renew or switch carriers so past work stays covered.
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