Professional liability (E&O) insurance in Washington

What professional liability insurance covers

Professional liability insurance (often called “errors and omissions” or E&O insurance) protects professionals from claims that they failed to perform their services competently. If a client alleges that your advice, design, or work caused them financial loss, professional liability coverage pays legal defense costs and settlements or judgments.

• Errors and omissions. covers claims that your professional work or advice fell below the standard of care and caused the client financial loss
• Defense costs. your carrier pays attorneys and defense expenses even while a claim is being defended, subject to policy limits
• Malpractice. medical and dental professionals call errors and omissions malpractice; the coverage is identical
• Retroactive date. the policy only covers claims arising from services performed on or after the retroactive date; claims from before that date are excluded
• Tail coverage. if you retire or close your practice, tail coverage extends protection for a period after you stop working

Washington professional licensing and E&O requirements

Washington licenses professionals through the Department of Licensing, Department of Health, and other specialized boards. Many professional licenses and contracts require you to carry errors and omissions insurance as a condition of licensure or contract compliance. Examples include architects, engineers, accountants, insurance agents, real estate brokers, health professions, and legal professionals. Verify your licensing body's requirements.

Understanding claims-made coverage

Professional liability is almost always sold on a “claims-made” basis, meaning the policy covers claims received during the policy period, regardless of when you performed the work. This is different from “occurrence” coverage (which covers incidents that happen during the policy period). When you cancel or retire, tail coverage protects you for claims made after you stop working.

• Retroactive date: the earliest date your policy covers; claims from before this date are excluded
• Claims-made: you're covered if a claim is received during the policy period
• Tail coverage: extends claims-made coverage after you retire; highly recommended and often required
• Prior acts coverage: if you switch carriers, prior acts coverage extends the retroactive date back to your original policy date

Choosing coverage limits

Coverage limits vary by profession and risk. Accountants, bookkeepers, and consultants typically carry $1-2 million per claim. Architects and engineers often carry $2-5 million or higher. Health professionals' limits vary by specialty. Your licensing body, clients, or contracts often specify minimum requirements.

How to lower your professional liability premium

• Implement documented quality-control and client-communication procedures
• Maintain detailed work files and client engagement letters
• Keep your continuing education current and your license in good standing
• Ask your carrier about risk management resources and loss-prevention consultation
• Bundle with commercial property or general liability for multi-line discounts

Why buy professional liability through Maru

Maru works with professionals to find carriers specializing in your specific discipline—accounting, engineering, real estate, health professions, law, and more. We explain claims-made coverage, retroactive dates, and tail options, and help you maintain compliance with Washington licensing and contract requirements.

Frequently asked questions

Vadim — Maru Insurance
Licensed independent insurance agent · WA & FL
Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.