Professional Liability Insurance in Colorado
General liability covers a client who trips in your office. It does not cover the client who says your work, your advice, or your missed deadline cost them money. That is professional liability, also called errors and omissions, and if clients pay you for expertise, you need it.
What E&O covers, and who needs it
A professional liability claim does not require you to have actually made a mistake. It requires a client who believes you did. Defense costs alone justify the policy for most service businesses.
- Negligent acts, errors, and omissions - claims that your professional work fell short and caused financial harm.
- Defense costs - attorney fees from the first demand letter, which is where most of the money goes even when you win.
- Missed deadlines and project disputes - the everyday version of E&O claims for consultants and agencies.
- Prior work - with the right retroactive date, work you did before the policy started stays covered.
Who buys it from us: consultants, marketing and design agencies, IT firms and managed service providers, real estate professionals, bookkeepers and tax preparers, property managers, engineers, and insurance agents. We carry it ourselves. It pairs with your business insurance program, and many contracts require it alongside cyber liability. High-net-worth owners often add a personal umbrella as well.
GL and E&O are different animals
Bodily injury and property damage go to general liability. Financial harm from your services goes to E&O. Service firms that carry only GL are covered for the risk they rarely face and bare on the one they actually have.
Claims-made, handled correctly
E&O policies are claims-made, so retroactive dates and tail coverage decide whether old work stays covered. We set both correctly at every renewal and every carrier move.
Contract review included
Client agreements increasingly specify E&O limits and wording. Send us the contract before you sign and we will confirm your policy satisfies it, or tell you what the upgrade costs.
Professional liability FAQs
What is the difference between general liability and professional liability?
General liability responds to bodily injury and property damage, like a client hurt on your premises. Professional liability responds to financial harm caused by your professional services or advice. Most service businesses need both, and bundling them is usually efficient.
I have never been sued. Why carry it?
Because defense costs start at the demand letter, not the verdict. Even a meritless claim can cost tens of thousands to make go away, and an E&O policy picks that up from day one.
What does claims-made mean for me?
It means the policy that responds is the one in force when the claim is made, not when the work was done. Two details keep you protected: a retroactive date that reaches back to your earliest work, and tail coverage if you ever cancel or switch. We manage both.
How much does E&O cost in Colorado?
Most small service firms pay somewhere between several hundred and a few thousand dollars a year, driven by profession, revenue, and limits. Higher-exposure professions price higher; quoting is the only way to know your number.
A client contract requires $1 million in E&O. Is that normal?
Yes, $1 million per claim is the standard contract ask. If you carry less, raising the limit usually costs less than losing the contract. Send us the insurance requirements section and we will match it.
Does E&O cover my subcontractors?
Your policy covers claims against your business, including work you delivered through subs. But subs should carry their own E&O too, and collecting their certificates protects your loss history and your premium.
Get your E&O quote
Tell us what you do and who you do it for. We will build the right professional program around it.