Professional Liability Protection for Your Business

Comprehensive Protection for Your Professional Risk

General liability insurance covers bodily injury and property damage — but it does nothing to protect your business when a client claims your professional advice, services, or work product caused them financial harm. That’s where professional liability insurance comes in. From errors and omissions to cyber breaches and employment disputes, the modern business faces a growing web of liability exposures that require specialized coverage.

At Mocombe Financial, we work with top-rated carriers to deliver tailored professional liability solutions for businesses of all sizes. Whether you are a solo consultant, a growing tech startup, or an established corporation, we help you identify the gaps and secure the protection you need.

Types of Professional Liability Coverage

Errors & Omissions (E&O) Insurance

Errors & Omissions insurance, also called professional liability insurance, protects businesses and individual practitioners against claims of negligence, mistakes, or failure to perform professional duties. If a client alleges that your advice, design, or service caused them financial harm, E&O coverage pays for your legal defense and any resulting settlement or judgment.

E&O is essential for any professional who provides advice or services for a fee — including real estate agents, insurance brokers, IT consultants, accountants, architects, engineers, management consultants, and healthcare providers. Many professional licensing boards and client contracts require proof of E&O coverage before you can practice or begin work.

• Claims-made form: Coverage applies when the claim is reported during the active policy period
• Retroactive date: Determines how far back prior work is covered — critical when switching carriers
• Extended reporting period (tail): Protects you after a policy is canceled or non-renewed
• Legal defense costs: Covered even for groundless or frivolous claims

Directors & Officers (D&O) Insurance

Directors and Officers (D&O) liability insurance protects the personal assets of corporate directors and officers when they are sued for alleged wrongful acts in managing the company. Shareholders, competitors, regulators, and even employees can bring claims against board members and executives for decisions made in the course of their duties.

D&O policies provide coverage on three levels: direct coverage for individual directors and officers (Side A), reimbursement to the company when it indemnifies its leaders (Side B), and direct coverage for the entity itself in securities claims (Side C). Even non-profit organizations need D&O coverage — board members serving without compensation can still be held personally liable for governance failures.

• Side A: Direct coverage for directors and officers when the company cannot indemnify them
• Side B: Reimbursement to the company for indemnification paid to directors and officers
• Side C: Entity coverage for securities claims brought against the company itself
• Advancement of defense costs: Insurer pays legal fees as they are incurred, not after resolution

Cyber Liability Insurance

Cyber liability insurance protects businesses from the financial fallout of data breaches, ransomware attacks, network outages, and other cyber incidents. With data breaches costing an average of nearly $5 million per incident and ransomware attacks growing both in frequency and sophistication, cyber insurance is no longer optional — it is a business imperative.

A comprehensive cyber policy typically covers first-party costs (notification, credit monitoring, forensic investigation, ransomware payments, business interruption) and third-party liability (defense and damages from lawsuits alleging failure to protect sensitive data, privacy law violations, or network security failures). Many insurers now include social engineering fraud, funds transfer fraud, and regulatory defense and penalties coverage.

• First-party coverage: Breach response, forensic investigation, notification costs, credit monitoring
• Third-party coverage: Defense and liability for privacy and network security claims
• Ransomware & extortion: Coverage for ransom payments and incident response services
• Business interruption: Lost income during network downtime caused by a covered attack

Employment Practices Liability (EPLI)

Employment Practices Liability Insurance (EPLI) protects businesses against claims brought by employees, former employees, or job applicants alleging wrongful employment practices. Even a single discrimination or harassment lawsuit can cost tens of thousands of dollars to defend — regardless of whether the claim has merit.

EPLI coverage typically includes protection against claims of wrongful termination, discrimination (based on age, race, gender, disability, religion, or other protected characteristics), sexual harassment, retaliation, and failure to hire or promote. With employment-related claims increasing every year and the average defense cost running $75,000–$150,000, EPLI is one of the most important coverages a business with employees can carry.

• Wrongful termination: Claims that an employee was fired without legal cause or in violation of public policy
• Discrimination: Allegations of biased treatment based on a protected class
• Harassment: Claims of hostile work environment, sexual or non-sexual harassment
• Retaliation: Claims that an employer took adverse action against an employee for engaging in protected activity

Frequently Asked Questions