Professional Liability (Errors & Omissions) is the coverage contractors most often assume they don’t need, right up until a client claims a design decision or a missed spec cost them money — a claim General Liability was never built to answer.
What It Actually Covers
Professional Liability responds to claims that your advice, design work, or professional judgment caused a client a financial loss — not a physical injury or property damage, which is General Liability’s job. If you spec materials, provide design-build services, or give any kind of professional recommendation as part of the work, this is the coverage that answers for it.
The Detail Almost Nobody Explains: Claims-Made, Not Occurrence
Most Professional Liability policies are written on a claims-made basis — meaning the policy has to be active when a claim is filed, not just when the work was actually performed. A project you finished two years ago can still generate a claim today, and if your coverage lapsed in between, that claim may have nowhere to land.
This is exactly why tail coverage (extended reporting period) matters if you ever switch carriers or let a policy lapse — it keeps your past work covered for claims that surface later.
Never assume a completed project is “in the clear” simply because the job is done and paid for.
Where This Gets Confused with General Liability
GL responds to physical injury or property damage. Professional Liability responds to a financial loss from an error, omission, or negligent recommendation — different trigger, different policy.
“My GL covers my work” is one of the most common and most costly misconceptions a contractor can carry into a claim.