What is Professional Liability Insurance?
Professional liability insurance—also known as errors and omissions (E&O) insurance—protects Arkansas professionals from lawsuits related to mistakes, negligence, or failure to deliver services as promised.
Unlike general liability insurance, which covers physical damage or injury, E&O insurance covers financial losses resulting from service-related issues—such as providing poor advice, missing deadlines, or making a documentation error.
If you're a consultant, real estate agent, therapist, accountant, or any service-based expert, one mistake can lead to a costly legal battle. This coverage offers peace of mind so you can focus on your work—not defending it in court.
Ready to protect your business from service-related claims?
Who Needs Professional Liability Insurance in Arkansas?
If you provide specialized services, guidance, or advice in Arkansas, E&O insurance should be a consideration. It's especially important for:
- Consultants – Whether you’re helping businesses streamline processes, refine strategies, or solve complex problems, one oversight could lead to a costly lawsuit. E&O coverage helps shield you from claims of negligence or subpar advice.
- Real Estate Agents – From misfiling paperwork to misadvising on zoning, even a small error can lead to big legal trouble. Professional liability keeps you protected when real estate transactions go sideways.
- Medical Professionals – While medical malpractice has its insurance types, many healthcare providers rely on E&O policies for non-clinical claims—such as miscommunication or documentation mistakes.
- Accountants – One miscalculation, missed deadline, or overlooked tax code change could cost a client thousands. Professional liability safeguards your business and reputation.
- Marketing & IT Firms – When campaigns flop or software implementations misfire, your clients may come after you. E&O insurance covers legal fees and settlements, so you can keep innovating with confidence.
By choosing errors and omissions insurance, Arkansas professionals can protect their livelihood—and their sanity.
Protect your income and your reputation.
What Does E&O Insurance Cover?
Professional liability insurance in Arkansas is all about covering the “oops” moments that can cost your business big. Whether you missed a deadline, gave flawed advice, or simply had a miscommunication that led to financial loss for a client, this coverage steps in. Here's what it typically includes:
- Errors and Omissions (E&O) – The backbone of this policy. It protects your business if you make a mistake (error) or fail to perform a service (omission) that results in a financial loss for your client. Think: sending the wrong contract draft, miscalculating data, or missing a crucial deadline.
- Negligence – Even if you didn’t mean to, failing to meet a professional standard of care can trigger a claim. If your actions—or inactions—cause harm, this coverage has your back.
- Misrepresentation – Did you say something that a client interpreted as a promise? If they act on your advice and lose money, they might accuse you of misrepresentation. E&O insurance helps cover these claims, whether it was a misunderstanding or a genuine oversight.
- Legal Defense Costs – Attorneys aren’t cheap. Even if you’re not at fault, defending your business in court racks up costs fast. This coverage helps pay for legal fees, court costs, and other expenses related to your defense.
- Settlements and Judgments – If a case doesn’t go your way—or you settle to avoid a long legal battle—this insurance helps cover what you owe, up to your policy limits.
With professional liability insurance in Arkansas, professionals can stay focused on their business, not their next potential lawsuit.
What Our Customers Say
Common Claims and Real-Life Examples
Even the most experienced professionals in Arkansas can make mistakes—and when they do, clients might respond with a lawsuit. Here are a few real-world examples of how errors and omissions insurance in Arkansas can be a lifesaver:
- Real Estate Agent Misstep – A Little Rock agent gives a client incorrect zoning information. The buyer purchases a property expecting to build a business, only to find out it’s zoned residential. The agent is sued for misrepresentation.
- Consultant Oversight – A Fayetteville business consultant recommends a marketing strategy that unintentionally leads to a major drop in sales. The business owner sues, claiming the advice directly caused the financial loss.
- Therapist Claim – A Bentonville therapist is accused of improper treatment methods that a client claims worsened their condition. Even if the claim is false, legal defense costs add up quickly.
How G&G Helps Professionals Stay Protected
At G&G Independent Insurance, we know that no two professionals—or policies—are the same. Whether you're a consultant in Conway, a real estate agent in Hot Springs, or a therapist in Fayetteville, we tailor professional liability insurance Arkansas policies to fit your unique risks. Our team shops your coverage with 50+ carriers to find the best price and protection—so you don’t have to waste time comparing quotes.
We also offer a full range of business insurance options tailored for Arkansas professionals to make sure every aspect of your coverage needs is covered.
But we don’t stop at finding a great rate. G&G also partners with local professionals to help manage risks before they turn into claims. From walking you through coverage options to helping you understand how to respond to potential client disputes, we’re with you every step of the way.
Our local roots and tech-powered process mean you get personalized service with smart solutions. It’s peace of mind, Arkansas-style—courtesy of the experts at G&G Independent Insurance.
Frequently Asked Questions
What’s the difference between general liability and professional liability?
General liability covers physical risks—like injuries or property damage. Professional liability insurance in Arkansas covers financial losses due to mistakes, bad advice, or service failures. Think slip-and-fall vs. misfiled tax return.
Is this required for consultants in Arkansas?
It’s not legally required in most cases, but it’s highly recommended. Many clients won’t work with consultants unless they carry errors and omissions insurance in Arkansas to show they’re protected and professional.
How much does professional liability insurance cost?
Costs vary based on your industry, risk level, claims history, and coverage limits. In general, Arkansas professionals might pay anywhere from $300 to $1,500 annually. G&G can shop multiple carriers to find the best rate for your needs.
Does this cover independent contractors?
Yes! If you’re a self-employed expert or a 1099 contractor, this coverage is often essential. One small mistake can still lead to a big lawsuit.
How do I file a claim?
If something goes wrong, contact your G&G agent immediately. We’ll help guide you through the claims process—from gathering documents to working with the insurance company—so you can get back to work faster.
Protect Your Expertise—and Your Income
Your skills are your livelihood. Don’t let one mistake or misunderstanding put everything you’ve built at risk. With professional liability insurance, Arkansas professionals can stay confident, covered, and focused on what they do best.
Don’t leave your reputation unprotected. Get a free professional quote from G&G today and focus on what you do best.
