Professional Liability (E&O)
Errors and omissions coverage for claims that your professional services, advice, or work caused a client a financial loss, including defense costs. The core coverage for advisory and service firms.
Claims-Made Coverage
A policy structure, common for E&O, where the policy in force when a claim is made responds, not the one from when the work was done. Continuity between policies matters.
Retroactive Date
The date that governs how far back a claims-made policy covers your prior work. Work done before the retro date is generally not covered, so preserving it when you renew or switch carriers matters.
Extended Reporting Period (Tail)
Coverage that lets you report claims after a claims-made policy ends, for work done while it was in force. Important when closing a firm or changing carriers.
Cyber Insurance
Coverage for data breaches and cyber events, including response, notification, liability, and often funds-transfer and social-engineering fraud. Relevant to any firm holding client data or funds, not just tech.
Technology E&O
Professional liability written for technology services and products, covering failures like outages or software that does not perform. Usually paired with cyber for tech and IT firms.
Social Engineering Fraud
A scam, often a spoofed email, that tricks a firm or client into sending money or data. Coverage for it varies between cyber and crime policies, a key check for firms that handle funds.
Funds Transfer Fraud
Loss from a fraudulent or manipulated transfer of money. Where it is covered varies between cyber and crime coverage, so the two should be coordinated.
General Liability
Coverage for third-party bodily injury and property damage from your premises and operations. It does not cover professional mistakes, which is E&O's role.
Business Owners Policy (BOP)
A package of general liability and business property, sometimes business income, for small firms. It does not include E&O or cyber, which are added separately.
EPLI
Employment practices liability insurance, covering claims like harassment, discrimination, wrongful termination, and retaliation, including defense costs.
Crime / Employee Dishonesty
Coverage for losses from employee theft, forgery, and funds-transfer or social-engineering fraud. Relevant to firms with access to client or company funds.
Management Liability
Coverage for claims about how a firm is governed and managed, including directors and officers and sometimes fiduciary liability. Grows in relevance as a firm adds investors, a board, or benefit plans.
Directors and Officers (D&O)
Coverage protecting a firm and its leaders from claims about management decisions. Not limited to public companies; private firms with investors or boards can face these claims.
Media Liability
Coverage for claims from content and media you create or distribute, like copyright or trademark infringement and defamation. Important for marketing, advertising, PR, and content firms.
Additional Insured
An endorsement extending your liability coverage to another party, such as a client, for claims arising from your work. Client contracts commonly require it.
Certificate of Insurance (COI)
A document summarizing your coverage as of its issue date. It proves a policy exists but does not by itself grant coverage; the endorsements behind it satisfy a requirement.
Scope of Services
The description of the professional services a firm provides, which an E&O policy is written around. Work outside the described scope may not be covered, so accuracy matters.
Prior Acts
Coverage for work performed before the current policy period, governed by the retroactive date in a claims-made policy. Preserving prior-acts coverage is key when switching carriers.
