Professional Liability Insurance (E&O) The average total cost of claims resulting in a defense and settlement payment is $125,000.* Also known as errors and omissions insurance, professional liability insurance provides protection in areas where general liability insurance does not and is highly recommended for businesses that provide professional services, advice, or is required to have coverage to enter a contract with a client. Professional liability insurance keeps you protected against claims of negligence or the inability to perform your services.Even if a client’s allegations are groundless, you could end up spending thousands of dollars to defend the lawsuit and rebuild your reputation. With professional liability coverage, you can protect your business’ assets, cover any costs required for defense and damages awarded, and more.*“Employee Charge Trends Across the United States.” Hiscox, Inc. 2015.