Professional Liability (E&O) Insurance in Texas
Professional liability insurance, also called errors and omissions coverage, can help when a client alleges that your professional services caused a loss. Tell us what you do and what your contracts require so we can review the coverage available for your business.
What is professional liability insurance?
Professional liability insurance addresses covered claims arising from professional services or a failure to provide them. The services described in the policy, its exclusions, and its claim and reporting requirements determine how it may respond. It is also called errors and omissions insurance, or E&O.
The Texas Department of Insurance describes the coverage this way: 'professional liability insurance, sometimes called errors and omissions, provides coverage for claims for damages arising from the performance of professional services.'
TDI also explains that this coverage can typically help with claim settlements, legal fees, and judgments tied to your professional services.
Does Texas require professional liability insurance?
Insurance requirements depend on your profession and license. General liability and professional liability are different coverages, so check the exact requirement with your licensing authority.
For example, Texas real estate inspectors must meet TREC's financial responsibility requirement. TREC accepts professional liability insurance or other qualifying coverage; use its current requirements when arranging proof of coverage.
A client may also require professional liability insurance and proof of it under a contract. Bring your license details and the contract wording so we can check the coverage being requested.
Sources: Texas Real Estate Commission inspector licensing requirements and rules; Texas Department of Licensing and Regulation HVAC licensing requirements; Texas State Board of Plumbing Examiners certificate of insurance, reviewed September 8, 2026.
What can professional liability insurance help with?
What is available still depends on your specific services and contracts.
Claims about a mistake
Coverage can typically help when a client says a mistake in your professional work caused them a loss, including a missed step or a recommendation that did not hold up.
Settlements and judgments
Depending on the policy, coverage can help pay settlements and judgments tied to a covered claim arising from your professional services.
Legal defense costs
A covered claim's legal defense costs can typically be part of what the policy addresses, even before anyone decides whether the claim has merit.
How the liability policies fit together
General liability and professional liability address different exposures. Ask how each policy treats your services and any injury, property damage or financial loss alleged to result from them.
What this usually does not address
- Claims outside the professional services described in the policy, or excluded by its terms. Review the actual services and allegations alongside both professional liability and general liability.
- A specialty this page does not name, often with its own separate insurance path. Bring us what you do and a licensed team member will tell you what is possible.
- A specific coverage amount, form, or deadline a client or contract names. Bring us the exact wording so we can go through it with you.
- A policy you already have and are not sure covers this. Bring us the current policy and we will look at it with you.
How does the office review this before anything is quoted?
A licensed team member reviews your business before anything is quoted or bound. They read what you send, ask about anything missing, and look at whether a specific market is available for your work.
Expect questions about the professional services you provide, your typical client relationships, and any contract you already have. If a client has asked you for proof of coverage, bring that request along so we can go through it together.
Bring what you have
- 01A description of the professional services you provide
- 02Your typical contract or client agreement, if you have one
- 03Any certificate of insurance request from a client or contract
- 04Your license number, if your work requires one
- 05Your current policy, if you already carry this coverage
- 06Your approximate payroll, sales, or billable hours
What affects the cost of professional liability insurance in Texas?
Cost moves with the size and shape of your operation, not a flat rate. The Texas Department of Insurance notes that insurance companies use payroll, sales, billable hours, or number of clients to calculate an estimated premium.
A specific review of your professional services, your contracts, and your claim history tells you more than a number found online, since two businesses in the same field rarely look the same once the details are in.
Before you compare the price
- What counts as a claim
Ask how each quote defines a covered claim tied to your professional services.
- Occurrence or claims made
Ask whether the policy is written on an occurrence or a claims made basis, since the two respond differently over time.
- Who and what is included
Ask which services, contractors, or past work are included and which are not.
- What the limits mean
Ask a licensed team member to walk through the limits and deductibles in plain words before you compare policies.
Insurance for your type of business
- Agricultural Businesses & Services
- Trucking Companies
- Churches
- Horse Owners and Equine Businesses
- Self Storage Facilities
- Auto Repair Shops
- Daycares and Child Care Centers
- HVAC Contractors
- Oil and Gas Operators and Contractors
- Plumbing Contractors
- Electrical Contractors
- Painting Contractors
- Flooring Contractors
- Landscaping and Lawn Care
- Coffee Shops and Cafes
- Food Trucks, Trailers and Carts
- Catering Businesses
- Bakeries, Donut and Pastry Shops
- Restaurants and Cafes
- Salons and Barber Shops
- Photographers
- Medical Offices
- Business insurance by industry
Common questions from Texas business owners about professional liability insurance
What is professional liability insurance?
Professional liability insurance, also called errors and omissions insurance, can help pay defense costs, settlements and judgments for covered claims arising from your professional services. The policy defines which services and claims it covers.
How is professional liability insurance different from general liability insurance?
General liability commonly addresses claims involving your premises, operations, products or completed work. Professional liability addresses covered claims arising from professional services. The policy forms and exclusions determine how each applies, so review both against the work you perform.
Do I need both general liability and professional liability insurance?
The Texas Department of Insurance's own answer is that you might need both, since the two types of insurance cover different kinds of damage. A licensed review of your specific work is the way to know for sure.
What does it mean when a client asks for proof of professional liability coverage?
It usually means a certificate of insurance, and Texas allows the request: the Texas Department of Insurance confirms a person hiring you may require that you have insurance and provide proof of it. Bring us the exact request and we will help you sort it out.
What is the difference between an occurrence policy and a claims made policy?
An occurrence policy generally responds to covered events occurring during its policy period. A claims-made policy generally requires the claim to be made, and often reported, within specified periods; any retroactive date also matters. Ask how prior acts and extended reporting periods apply before changing or ending coverage. The exact policy terms control.
What affects the cost of professional liability insurance?
Cost typically moves with factors like payroll, sales, billable hours, or number of clients, which is how the Texas Department of Insurance describes the estimated premium calculation. A specific review of your work gives a more accurate picture than a number found online.
Ready to talk about your professional liability coverage?
Start online or call the Madisonville office, and bring your questions about your work and your contracts. Not every company writes every policy type, and availability changes by risk, location, and underwriting.
A website request does not bind, change, cancel, reinstate, or confirm coverage.