Professional Liability Insurance
Professional liability (errors & omissions) protects your company against claims that your professional advice, work, or services caused a client harm — essential for development agencies and consultancies billing for expertise.
Professional Liability for Web & Software Service Firms
If your company is paid for its expertise — building custom software, consulting, designing, or managing client projects — professional liability protects you when a client claims that work was negligent, incomplete, or didn't deliver what was promised. For an agency or consultancy, it's the service-side counterpart to product-focused tech E&O.
What It Covers
- Negligence claims: Allegations your professional work fell below standard
- Failure to deliver: Missed milestones, scope disputes, and project failures
- Misrepresentation: Claims you promised results or capabilities you didn't deliver
- Defense costs: Legal defense regardless of whether the claim has merit
Agencies vs. Product Companies
A pure SaaS product company leans on tech E&O; a services agency leans on professional liability; many web app businesses do both — building custom work *and* shipping a product — and need a program that covers the full spectrum. We structure coverage around your actual revenue mix.
Why a Contract Doesn't Protect You
A limitation-of-liability clause helps, but clients sue anyway, and you still must fund a defense. Professional liability pays those defense costs and any covered settlement when a contract clause is challenged or carved around.
What's Covered
Frequently Asked Questions
They overlap and are often combined. Professional liability focuses on negligence in the services you provide; technology E&O focuses on failures of the technology product you deliver. Agencies that both build custom work and ship products need coverage spanning both.
Yes. Limitation-of-liability clauses help but are routinely challenged, and you still must pay to defend a claim. Professional liability funds that defense and covered settlements when a clause is contested.