How to Get $10 Million in Professional Liability (E&O) Insurance

For firms whose contract requires $10M, Professional Liability (E&O) is usually built as a primary policy plus follow-form excess layers, not one single policy.

What does a $10M Professional Liability requirement mean for a professional services firm?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work or advice caused a client a financial loss. A $10M clause often looks like this:

• Per claim and aggregate: the most paid for one claim, and for all claims in the policy year. This clause asks for $10M/$10M. See how limits are written.
• Claims-made: Professional Liability is almost always claims-made. It covers claims made and reported during the policy, for work after the retroactive date.
• Three years after: you would usually renew every layer, or buy a tail (extra time to report claims) on every layer.
• The right form: Tech firms usually buy Technology E&O, lawyers and doctors buy malpractice coverage, and architects and engineers buy their own design Professional Liability form.

Who asks for $10M in Professional Liability?

A carrier sets the limit it offers from your revenue, services and claims history, so not every small firm can place $10M. Requests often come from:

• Very large companies with standard contracts
• Banks, insurers, hospitals and health plans hiring firms for regulated work
• Government agencies on large contracts

Say a bank hires a data consulting firm. If one mistake in a report used in a regulated filing leads to claims from several parties, the policy's related-claims wording usually treats them as one claim. That is why the per claim limit matters as much as the aggregate.

How is $10M in Professional Liability built?

A primary policy pays first. An excess policy pays only after the layer below it is used up. "$5M xs $5M" means a $5M layer above the first $5M.

A larger firm with a clean history may get a $5M primary. A smaller firm may get $1M or $2M, with more excess above.

At $5M, one primary policy or a single excess layer may be enough. At $10M, you more often need two or three layers, so more terms, retroactive dates and policy periods must line up. See $5M Professional Liability.

Then check:

• Every layer follows form. An excess layer with its own exclusion could leave a claim covered below but not above.
• Retroactive dates match. If an excess layer has a later date, older work may only be covered up to the layers below it. See retroactive dates explained.
• Policy periods match. If a lower layer lapses, the layers above may not respond until the underlying limit is paid.

What will underwriters ask for?

Underwriters are the insurer staff who decide whether to offer coverage and on what terms. They often ask for:

• A signed application and revenue by type of work
• The contract that requires $10M, your largest clients and your standard client agreement
• Loss runs (reports listing past claims), plus details on any incident
• Your current policy with its retroactive date

What affects the cost of $10M in Professional Liability?

• What you do and for whom. Work tied to money, health, data or public programs, and bigger contracts, usually cost more.
• How the tower is built. The primary layer usually costs the most per $1M of limit, and higher layers usually cost less.
• Claims history. Past claims can shrink the limit offered.
• Retention. Retention is the amount you pay before the policy pays, like a deductible. A higher one usually lowers premium.

Frequently asked questions

How do I get $10M Professional Liability if I only have $1M or $2M now?

Morrow can request new quotes for a new primary at a higher limit, or for excess layers above your current policy. We aim to keep your retroactive date and prior acts coverage (coverage for work done before the new policy starts) where the market allows. Prior acts may be limited after a gap or for known incidents. Before you switch, report known incidents to your current carrier, because a new policy usually excludes them.

Can a commercial umbrella cover part of $10M in Professional Liability?

Almost never. A commercial umbrella usually excludes professional services, so you usually need follow-form excess Professional Liability. Read more on umbrellas.

Do I need $10M firm-wide if only one contract requires it?

It depends on your contract. For construction and design projects, some markets may offer a project-specific policy, usually for the project term plus a tail. Check that your contract accepts it. Outside construction it may be hard to find. Project policies usually need a broker. Morrow can help you find them.

What proof of a $10M tower can I give my client?

You can usually give a certificate of insurance (a one-page summary of your coverage) listing each layer's policy number, limit and dates. Adding a client as additional insured is not automatic and is not the norm on Professional Liability. Some forms allow it in limited cases, usually for the client's liability from your work. Check the wording, and confirm each excess layer follows it. Morrow can review it with you.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.