Professional liability insurance, also called errors and omissions (E&O), covers your business against claims that your professional services caused a client financial loss. It is a separate policy from general liability because GL specifically excludes professional services claims.
Who needs professional liability in Georgia
Any Georgia business that provides advice, designs things, or performs professional services for clients needs to consider professional liability coverage. This includes technology firms, consultants, accountants, architects, engineers, property managers and brokers, staffing agencies, marketing agencies, healthcare-adjacent services, and financial advisors. The common thread is that a client could claim your work or advice caused them financial harm.
The test is simple: if a client could sue you for making a mistake in your work, and that mistake is not a physical injury or property damage claim, you have professional liability exposure. GL does not respond to those claims.
Claims-made versus occurrence policies
Professional liability is almost always written on a claims-made basis rather than an occurrence basis. This is a critical distinction. An occurrence policy covers claims for incidents that happen during the policy period, regardless of when the claim is filed. A claims-made policy covers claims that are both made and reported during the policy period.
The practical consequence: if you cancel your professional liability policy, you lose coverage for claims filed after cancellation, even if the underlying incident happened while you were insured. This is the purpose of tail coverage, also called an extended reporting period. Tail coverage extends your ability to report claims after the policy ends. When you cancel a claims-made professional liability policy, purchasing tail coverage is usually the right move unless you are immediately replacing the policy with another claims-made policy from a new carrier.
What professional liability costs in Georgia
For most Georgia professional services firms, standalone professional liability coverage starts at $800 to $2,500 per year for $1 million in coverage. Technology E&O, which covers both professional liability and technology-specific risks, typically runs $1,500 to $4,000 per year for $1 million. Healthcare-adjacent professional liability is priced by specialty and claims history and runs a wider range. The specific premium depends on your revenue, number of employees, industry class, contract types, and claims history.
CNA and Travelers as Georgia professional liability carriers
CNA has particular strength in healthcare professional liability for Georgia medical practices and allied health providers. Travelers professional liability is strong for technology firms, consultants, and professional services in the $1 million to $25 million revenue range. Hanover and Hartford both have solid E&O products for standard professional services classes. For technology-specific E&O and cyber combined policies, Coalition and Travelers CyberRisk are worth comparing.